What is the present value of this pension

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Reference no: EM132014363

Class, if you have a pension that will kick in 15 years from now and pay you $4,000 per month for 20 years, what is the present value of this pension if the appropriate discount rate to use is 6%? Show your work.

This example is based on a pilot of Delta airlines that lost his pension during the airline's bankruptcy a few years back.

Reference no: EM132014363

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