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Suppose that you are 50 years old as of now. Your pension will pay $80,000 each year forever. The first payment starts when you
Suppose that you are 50 years old as of now. Your pension will pay $80,000 each year forever. The first payment starts when you become 65 (i.e., the first payment will start 15 years from now). What is the PV of your pension as of today? Assume that the discount rate is 5%.
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
