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The pension plan is also considering investing $70 million of its cash today at a...

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Accounting

The pension plan is also considering investing $70 million of its cash today at a 3.5 percent annual interest for five years with a commercial bank. The bank in return will pay an annuity due at the beginning of year 6 for the next 15 years. How much will the annual payments be from years 6 to 20, if the rate at which these payments are discounted is also 3.5%?

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