Problemmarys replacement is unexpectedly hired away by, Ask an Expert

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Problem:

Mary's replacement is unexpectedly hired away by another school, and Mary is asked to stay in her position for another three years. The board assumes the bonus should stay the same, but Mary knows the present value of her bonus will change.

Required:

Question 1: What would be the present value of her deferred annunity?

Note: Please explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149306

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