The terms of a single parent's will indicate that a child will receive an ordinary annuity...

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The terms of a single parents will indicate that a child will receive an ordinary annuity of $15,000 per year from age 18 to

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Answer 1

Answer #1

Amount to remove =

$71,406.96

Workings: Assuming the first annuity starts at age 18 till age 24 which is 7 payments.

PV of annuity at age 17	$86,795.60
PV of the amount at age 13	$71,406.96

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The terms of a single parent's will indicate that a child will receive an ordinary annuity...

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