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Question
John will retire seven years later and would like to have a 10-payment annual annuity that will have its first payment at the moment when he retires. If the payment amount is $50,000 a year and the interest rate is 12%, what is the fair value should be paid today for this annuity?a. $282,511
b. $143,129
c. $141,667
d. $316,412
e. $160,304
Answer
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