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You are offered an annuity that will pay you $200,000 once per year, at the end of the year, for 25 years. The first payment
You are offered an annuity that will pay you $200,000 once per year, at the end of the year, for 25 years. The first payment will arrive one year from now. The last payment will arrive twenty five years from now. Suppose your annual discount rate is i=17.25% , how much are you willing to pay for this annuity?
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