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Now, let's select the sizing of Pete's annuity payment (m) and Allow the annuity run its course. Could it be not correct that we could play around with the dimensions of Pete's Preliminary bank deposit (P) right until The 2 accounts had the identical benefit at the conclusion of this experiment? When this situation is achieved, we could declare that Pete's Preliminary deposit (P), and that is a present worth, correlates With all the current price of Nick's annuity, because it provides the identical foreseeable future benefit less than similar situations.
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