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John Lang was injured in a car accident. As the result of his injuries Mr. Lang won a legal case that allows him to
John Lang was injured in a car accident. As the result of his injuries Mr. Lang won a legal case that allows him to collect $25,000 cash per year for five years. In order to pay his medical bills, Mr. Lang needs his money now. Assuming an ordinary annuity and a 8% required rate of return, which of the following represents the amount of cash a financing company would be willing to pay today to buy the annuity owed to Mr. Lang? (Use the PVA of $1 table) (Round your answer to the nearest whole dollar.) Multiple Choice $99,818 $125,000 $92.345 None of the answers is correct
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