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Krystyna has along-term consulting contract with an insurance company that guarantees her $26,000 per year for five years. She believes inflation will be 4 percent

Krystyna has along-term consulting contract with an insurance company that guarantees her

$26,000 per year for five years. She believesinflationwill be 4 percent this year and6 percent next year and then will stay at11 percent indefinitely.Krystyna'sreal MARRis12 percent. What is the present worth of thiscontract?

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