Question C You are just retired, You pension company promised you that they will pay you $25,000 a year for 30 years. The first payment you will receive is a year from now. The market interest rate is 5% per year. 1) What is the present value of you pension if the payment you receive will be the same for 30 years? 2) What is the present value of your pension if the payment you receive will grow 3% per year to combat inflation?

You are just retired, You pension company promised you that they will pay you $25,000 a year for 30 years. The first payment you will receive is a year from now. The market interest rate is 5% per year. 1) What is the present value of you pension if the payment you receive will be the same for 30 years? 2) What is the present value of your pension if the payment you receive will grow 3% per year to combat inflation