Question a relative who just turned 60 is looking at, Ask an Expert

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Question: A relative, who just turned 60, is looking at purchasing an investment product which promises to pay $40,000 next year (on his 61st birthday) and will pay an amount that grows by 2% each year until his 80th birthday (a total of 20 payments). The appropriate interest rate is 6%. He has asked you for your advice on what price he should be willing to pay for this investment product. How much is the investment product worth today? If possible how would you do this in excel?

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