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Now, let us select the size of Pete's annuity payment (m) and Permit the annuity operate its training course. Is it not genuine that we could mess around Together with the measurement of Pete's Preliminary financial institution deposit (P) until finally The 2 accounts had exactly the same price at the conclusion of this experiment? When this problem is fulfilled, we could claim that Pete's Original deposit (P), that is a existing benefit, correlates While using the present price of Nick's annuity, because it presents the same future benefit under equivalent circumstances.
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