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Mr Sam gets annual pension payments for the next 30 years. After the first payment, each subsequent annual benefit will be adjusted upwards to reflect

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Mr Sam gets annual pension payments for the next 30 years. After the first payment, each subsequent annual benefit will be adjusted upwards to reflect impact of inflation. You are given: (i) The first benefit is 50,000 and will be paid one year from today. (ii) The inflation rate is 2% per year forever. At an annual effective interest rate of 6.8%, what is the current value of the pension

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