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You are at retirement age and one of your benefit options is to accept an annual annuity of $75,000 for 15 years. The first payment

You are at retirement age and one of your benefit options is to accept an annual annuity of $75,000 for 15 years. The first payment would be received one year from today. What lump sum settlement, if paid today, would have the same present value as the $75,000 annual annuity? Assume a 10 percent annual discount rate.

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