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You are considering purchasing an investment contract that will eventually pay you $4000 per year at the end of each year for seven years. The
You are considering purchasing an investment contract that will eventually pay you $4000 per year at the end of each year for seven years. The appropriate interest rate for the risks involved is 6.4% The first payment begins in 6 years. What price should you pay today to purchase this contract (rounded to nearest dollar) ?
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