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Rhonda receives annual payments that begin with the first payment of $50 today. Each subsequent payment decreases by $10 per year until time 4 years,

Rhonda receives annual payments that begin with the first payment of $50 today. Each

subsequent payment decreases by $10 per year until time 4 years, and then each sub-

sequent payment increases by $10 until the last payment at time 8 years. The annual

effective interest rate is 5%. Determine the present value of the payments at time 0.

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