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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 ther present value of her deferred annunity?

Note: Explain all steps comprehensively.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91149307

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