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American General offers a 1 1 - year annuity with a guaranteed rate of 4 . 6 2 % compounded annually. How much should you

American General offers a

11 -

year annuity with a guaranteed rate of

4.62 %

compounded annually. How much should you pay for one of these annuities if you want to receive payments of

1600

annually over the

11

year

period?

Question content area bottom

Part

1

How much should a customer pay for this

annuity?

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