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8.You are offered an annuity that will pay $10,000 a year for ten years (that is, ten payments), but the payments start after five years

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8.You are offered an annuity that will pay $10,000 a year for ten years (that is, ten payments), but the payments start after five years have elapsed. If you want to earn 8 percent on your funds, what is the maximum you should pay for this annuity? 9. Auntie Mary sells her home for $200,000, which is then invested to earn 5 percent annually. If her life expectancy is ten years, what is the maximum amount she can annually spend on a nursing home, doctors, and taxes. If the return were to double to 10 percent, will the amount she may spend each year more than double

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