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The rate of inflation is 3% and the annual effective rate of interest is 6%. Jack is receiving an annual annuity from his employer for
The rate of inflation is 3% and the annual effective rate of interest is 6%. Jack is receiving an annual annuity from his employer for 12 years with payments at the end of each year. Each payment is indexed to inflation. The first payment is R(1.03). If the present value of the payments at 6% is 119,350, what is R? (Round to the nearest 10)
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