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Suppose you have $1000 and the current market quarterly interest rate is 2% (not annualized). You wish to purchase an annuity that will pay

 

Suppose you have $1000 and the current market quarterly interest rate is 2% (not annualized). You wish to purchase an annuity that will pay you quarterly for the next 5 years. What will be the value of the quarterly cash payment spending all $1000? (You can do this with a financial calculator - Your FV needs to be zero, everything else is the same or can use the truncated annuity formula)

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