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Sara & Fred (S&F) are evaluating the purchase of a deferred annuity contract as a part of their retirement planning. The annuity contract would pay $49 thousand per year for 23 years, with the first payment in 10 years (i.e., first payment at the end of 10 years). What is the most that S&F should pay for the annuity contract today? S&F's required rate of return is 5.6% per annum.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91946108

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