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Posted on Aug 07, 2024

You are looking to buy an infinite annuity paying $ 2 5 0 0 a year, but where the first payment arrives in five years

You are looking to buy an infinite annuity paying $

2500

a year, but where the first payment arrives in five years

(

not today

) .

If the APR is

7 %,

what would you be willing to pay for it today?

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