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On 12-31-15, Austin entered into an agreement that required Austin to pay a supplier $100 every year on 12-31 until 2026. The agreement required Austin

On 12-31-15, Austin entered into an agreement that required Austin to pay a supplier $100 every year on 12-31 until 2026. The agreement required Austin to make the first annual payment on 12-31-19. Assume the market rate of interest for Austin is 4%. As of 12-31-15 what was the present value of Austin’s obligation?

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