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Mr . Purdy purchased a 5 1 0 0 , 0 0 0 , 5 - year accumulating deferred annuity with a 5 % interest
Mr Purdy purchased a year accumulating deferred annuity with a interest rate maturing in years. The value at maturity would be At the end of years, the value had climbed to $ but interest rates had increased to Mr Purdy decided that he wished to close the fund so that he could reinvest in the current fund. What is the market value adjustment that Mr Purdy would pay at the end of years to break his contract and receive his money?
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