For tax reasons, your client wishes to purchase an annuty that pays $100,000 each year...
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For tax reasons, your client wishes to purchase an annuty that pays $100,000 each year for 6 years, with the first payment in one year. At an interest rate of 7 th and focusing on time value of money without consiferabon of any fees, how much would the dient need to invest now? Equivalent problem strukture (in neutral itime-waluecof-mancy ternis): What is the present value of an annuity thet poys $100,000 each year for 6 years, assuming a dscount rate of 7% and the first payrnent cocurs one year from now? Equkeleit exoblen structute (as a botreyed): How nuch could you borrow todty in exchange for parying beck $100,000 each year for 6 years, assuaing an intetest rate of phit and the fist payment occurs one your from now? Mease round your arswies to the nearest hundredth Open Formuia Surnmsiy in separate tab open Glossary in seghante tab Show remagtson tops
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