Receive an ordinary annuity

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Reference no: EM131618051

The terms of a single parent's will indicate that a child will receive an ordinary annuity of $13,000 per year from age 18 to age 24 (so the child can attend college) and that the balance of the estate goes to a niece. If the parent dies on the child's 13th birthday, how much money must be removed from the estate to purchase the annuity? (Assume an interest rate of 9%, compounded annually. Round your answer to the nearest cent.)

Reference no: EM131618051

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