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Under the terms of a contract, the following payments are guaranteed: $100 000 payable immediately. $75 000 per year for 5 years, payable in equal
Under the terms of a contract, the following payments are guaranteed: $100 000 payable immediately. $75 000 per year for 5 years, payable in equal monthly instalments of $6250 at the end of each month. $50 000 per year, payable annually at the end of the 6th through the 10th years. If interest is at 5% compounded annually, determine the discounted value at the beginning of the 4th year of the remaining payments due under the contract.
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