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John Smith is nearing retirement. He wants to purchase an annuity that will pay him $125,000 each year (with the first payment starting 1 year
John Smith is nearing retirement. He wants to purchase an annuity that will pay him $125,000 each year (with the first payment starting 1 year from now) for the next 30 years. The discount rate is 8%.How much money does he need to purchase this annuity today (assuming no commissions or extra fees by the company selling it to him)?Round to the nearest dollar.
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