The interest and discount rates are 2year compounded


Suppose a pension company sells a different kind of annuity. If you buy this annuity, then you will get $45,000 per year for 30 years. But the first cash-flow will be made 5 years from your purchase of the annuity.

The interest and discount rates are 2%/year, compounded annually. What is the present value of this annuity?

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Financial Management: The interest and discount rates are 2year compounded
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