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Your grandfather leaves you $87,000 as an inheritance. Rather than give you a lump-sum, your grandfather structures the inheritance as an annuity that pays $3,126
Your grandfather leaves you $87,000 as an inheritance. Rather than give you a lump-sum, your grandfather structures the inheritance as an annuity that pays $3,126 per month. You will receive the first payment one month later. If the effective annual rate is 12%, how many years does it take for you to receive all inheritance? [3 marks]
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