Question: You are comparing two annuities with equal present values. The applicable discount rate is 6.5 percent. An annuity will pay $2,000 per year, starting today,

You are comparing two annuities with equal present values. The applicable discount rate is 6.5 percent. An annuity will pay $2,000 per year, starting today, for 20 years. The second annuity will be paid annually, starting one year from today, for 20 years.

Required:

What is the annual payment of the second annuity?

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