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Problem:

A financial company advertises on television that they will pay you $65,000 now in exchange for annual payments of $10,000 that you are expected to receive for a legal settlement over the next 12 years. You estimate the time value of money at 12 percent.

Question: Calculate the present value of the annual payment. (Round time value factor to 3 decimal places and final answer to the nearest whole dollar.) Please explain in detail and show your work.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91145746

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