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Suppose an individual at age 25 has an annual income of 50,000 and that implies this income is expected to grow at an annual rate
Suppose an individual at age 25 has an annual income of 50,000 and that implies this income is expected to grow at an annual rate of 2% a year over the course of her career. Assuming that she is expected to retire at the age of 60, what is the discounted value of her lifetime earning? Use a discount of 3% when making your calculations.
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