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Now, let's pick the dimension of Pete's annuity payment (m) and Enable the annuity operate its course. Could it be not legitimate that we could play around While using the size of Pete's First bank deposit (P) till link the two accounts had the same value at the end of this experiment? When this problem is achieved, we will declare that Pete's Preliminary deposit (P), and that is a present worth, correlates with the present value of Nick's annuity, as it gives precisely the same long run worth under identical situations.
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