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# Sally, who just turn 65 years old, wants to have a before income tax annuity of $40,000 received at the beginning of each year, starting until age 90. She assumes a rate of return of 5.25%. How much does she

Sally, who just turn 65 years old, wants to have a before income tax annuity of $40,000 received at the beginning of each year, starting until age 90. She assumes a rate of return of 5.25%. How much does she need to pay the financial institution for this annuity?

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## PV PMT 1 1 rn r Where PV Present value of the annuity PMT Payment amount per per View the full answer

**Related Book For**

## Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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