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Present value of annuity

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The company is assessing the employees fund. At the end of each of the next 25 years the company will have to pay its retirees 5,432. If the fund is estimated to earn 2%, how much does the company need to have set aside today to ensure that it can meet its future obligations? (At the end of the 25th year, the balance should be drawn down to zero.) Show computation.

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The response discusses steps to compute the present value of annuity

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