Assume that Social Security promises you $41,000 per year starting when you retire 45 years from today
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Assume that Social Security promises you $41,000 per year starting when you retire 45 years from today (the first $41,000 will be paid 45 years from now). If your discount rate is 5%, compounded annually, and you plan to live for 18 years after retiring (so that you will receive a total of 19 payments including the first one), what is the value today of Social Security’s promise? (See Pearson MyLab Finance for the data in Excel format.)
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Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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