What is the equal annual consumption-growth annuity

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This question relates to Growth Annuity. If John takes a job at the local grocery store, his starting wage will be $40,000 per year, and he will get a 3% raise, in real terms, each year until he retires at the age of 53. If Linus lives to be 100, what is the equal annual consumption he could enjoy until that date? Interest rate is 5% for the rest of his life.

Reference no: EM13995885

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