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13. Your brother is about to retire, and he wants to buy an annuity that will provide him with $85,000 of income a year for

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13. Your brother is about to retire, and he wants to buy an annuity that will provide him with $85,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 15%. How much would it cost him to buy the annuity today?* 0 a $1,063,968 O b. $1,119,966 O c. $1,178,912 O d. $1,240,960 O e. None of the above 14. LSP stock is priced at $50 in the market and $60 according to analysts. The stock is then O a) Undervalued O b) Overvalued OC) Fair O d) $50.16 O e) None of the above

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