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Sharon Walsh has developed an educational software package. She agrees to sell the patent to Sam for five annual payments of $50,000 each. The payments

Sharon Walsh has developed an educational software package. She agrees to sell the patent to Sam for five annual payments of $50,000 each. The payments are to begin three years from today. Given an annual rate of 6%, what is the approximate present value of the five payments?

Select one:

a.

$176,839

b.

$187,450

c.

$210,618

d.

$218,820

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