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Q6.30: Jane has 15 years to go before she can begin collecting her pension benefits, but she is ready to retire now. She would like
Q6.30: Jane has 15 years to go before she can begin collecting her pension benefits, but she is ready to retire now. She would like to buy an annuity that will pay her $50,000 in the first year, then grow by 4% per year to accommodate inflation. If the discount rate is 7 percent what is the present value of this annuity? A $455,396.40 B $578,758.66 C $8,117,567 D $721,153.85
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