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    BE2-27 Kilarny Company: calculate amount to invest in an annuity contract

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    BE2-27 Kilarny Company is considering investing in an annuity contract that will return
    $20,000 annually at the end of each year for 15 years. What amount should Kilarny Company
    pay for this investment if it earns a 6% return?

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    Solution Preview

    The annual payment is PMT=$20,000
    number of periods is N=15
    The required rate ...

    Solution Summary

    The solution shows the calculations with a solution amount.