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Smith buys an annuity that will provide twenty payments of $1,000 each. The first payment will be made at the end of ten years, and

Smith buys an annuity that will provide twenty payments of $1,000 each. The first payment will be made at the end of ten years, and the remaining payments will be made at the end of each two-year interval thereafter. The effective annual rate of interest is 5%. Calculate the net single premium for this annuity.

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