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Your father is about to retire, and he wants to buy an annuity that will provide him with $ 4 0 , 0 0 0

Your father is about to retire, and he wants to buy an annuity that will provide him with $40,000 of income per year for 20 years, with the first payment coming immediately. The going rate on such annuities is 8% interest. How much would it cost him to buy such an annuity today?

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