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Suppose a retiree is entitled his annual pension of $30,000 for 25 years from retirement date. If the clause of the payments states that the
Suppose a retiree is entitled his annual pension of $30,000 for 25 years from retirement date. If the clause of the payments states that the pension is going to be increasing by 1% a year throughout the period, and interest rate is 13%, what is the present value of this retiree's total periodic pension benefit payment?
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