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Calculate how much a person must deposit

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Question - Calculate how much a person must deposit in a financial institution to contract a pension for his ex-wife for one of the following two options:

a) A pension of $ 4,000 per month that would be paid only for 10 years.

b) An annual pension of 40,000 that would be paid for life.

Consider that the financial institution offers you an interest rate of 3.6% annually convertible monthly.

Reference no: EM133056033

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