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Mike Carlson will receive $12,000 a year from the end of the third year to the end of the 12th year (10 payments). The discount

Mike Carlson will receive $12,000 a year from the end of the third year to the end of the 12th year (10 payments). The discount rate is 10%. The present value today of this deferred annuity is:

a. $61,450

b. $42,185

c. $55,379

d. $60,909

Will you please show me your work too? Thanks!

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