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The terms of a single parent's will indicate that a child will receive an ordinary annuity of $15,000 per year from age 18 to age 24 (so the child can attend college) and that the balance of the estate goes to a niece. If the parent dies on the child's 15th birthday, how much money must be removed from the estate to purchase the annuity? (Assume an interest rate of 5%, compounded annually. Round your answer to the nearest cent.)

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Financial Management, Finance

Category:- Financial Management
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