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You've bought an inflation - adjusted annuity to give you a constant real income during your retirement years. The annuity will make 2 0 annual
You've bought an inflationadjusted annuity to give you a constant real income during your retirement years. The annuity will make annual payments. The first payment of $ will occur one year from now, and annual payments will increase at the rate of inflation, for years and then stop. The interest rate is What is the present value of these cash flows?
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