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A new investment opportunity for you is an annuity that pays $4,000 at the beginning of each year for 3 years. You could earn 5.5%

A new investment opportunity for you is an annuity that pays $4,000 at thebeginningof each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

Select the correct answer.

a. $11,415.88b. $11,385.28c. $11,431.18d. $11,400.58e. $11,369.98

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