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Powns an annuity that promised to pay out cash flows every six months starting today, with the last payout in 20 years. Each cash flow
Powns an annuity that promised to pay out cash flows every six months starting today, with the last payout in 20 years. Each cash flow will be 2.6% greater than the previous. The value of this annuity is $125,683 and it is valued at 4.7% p.a. compounded twelve times a year. a. What cash flow is P expecting today? [9] b. What cash flow will P expected in exactly seven and a half years? [3]
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