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Suppose you receive annual annuity payments of $15000 per year and the payments are made on January 1. The first payment is made at the
Suppose you receive annual annuity payments of $15000 per year and the payments are made on January 1. The first payment is made at the start of year 8 and payments last for ten years. The appropriate rate of return for this contract is 10%. However, due to business conditions, the seventh payment is skipped. What is the present value of the annuity contract today?
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