Question 25 Beginning in 10 years, (end of years 10 to 12) you will receive 3...

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Answer 1

Answer #1

Number of years =3
PMT =70000
Value of benefits at year 9 =PMT*((1-(1+r)^-n)/r) =70000*((1-(1+8%)^-3)/8%) =180396.79

PV of benefits =180396.79/(1+8%)^9 =90243.31 or Option c is correct option

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Answer 2

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