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Mr. Crane is considering his life insurance needs and has determined that, in the event of his death, his family would need $28,800 in today's
Mr. Crane is considering his life insurance needs and has determined that, in the event of his death, his family would
need $28,800 in today's dollars at the beginning of each year (starting immediately). This payment will be needed until
his youngest child reaches age 18, which is 15 years from now. If he assumes an inflation rate of 5% and an after-tax
yield of 8%, what is the present value of these payments?
Select one:
a. $600,557
b. $586,412
c. $609,541
d. $357,318
e. $347,393
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