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Your savings currently are invested in an investment product generating 5,8% EAR. You are considering moving your money into a mutual fund expected to generate
Your savings currently are invested in an investment product generating 5,8% EAR. You are considering moving your money into a mutual fund expected to generate payments of $9,000 every 5 years. The first payment will be received five years from now and payments will continue unchanged forever. If the mutual fund is the same risk as your current investment product, what is the value today of the mutual fund investment?
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