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4 ( a ) . Assume that you are offered an annuity that pays $ 1 0 0 at the end of each year for

4 (

) .

Assume that you are offered an annuity that pays $

100

at the end of each year for

10

years. You could earn

8 %

on your money in other investments with equal risk. What is the most you should pay for the annuity?

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