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You successfully negotiated a new contract with one of your employees. The contract includes deferred compensation of $31,000 per year, paid at the ends of
You successfully negotiated a new contract with one of your employees. The contract includes deferred compensation of $31,000 per year, paid at the ends of years 4, 5, and 6. your employee's agent is insisting that the contract is fully funded today (t=0). How much does the company need to put in an account today in order to have enough money to fund this obligation, assuming a discount rate of 7.0%?
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