If you require an effective annual return of 7 percent on


Peter Lynchpin wants to sell you an investment contract that pays equal $13,000 amounts at the end of each year for the next 20 years.

If you require an effective annual return of 7 percent on this investment, how much will you pay for the contract today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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Financial Management: If you require an effective annual return of 7 percent on
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