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You buy an annuity that pays $75,000/yx for 25 years. Discount rate is 8.5%. What was the cost of the annuity? In other words -

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You buy an annuity that pays $75,000/yx for 25 years. Discount rate is 8.5%. What was the cost of the annuity? In other words - what is the Present Value of that future income stream? (Assume payments at the end of the period.) What is the PV? Jeff purchased the same annuity however payments are at the beginning of the period. What was the price? What is the PV

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