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You are considering two insurance settlement offers. The first offer includes annual payments of $5,000, $3,500, and $10,000, with the first payment being paid one
You are considering two insurance settlement offers. The first offer includes annual payments of $5,000, $3,500, and $10,000, with the first payment being paid one year from now. The other offer is a lump sum amount today. What is the minimum amount you will accept today in lieu of the annual payments if you require a discount rate of 9.7 percent?
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$14,014
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$15,746
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$16,864
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$14,932
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$15,041
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