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American General offers a 1 1 - year annuity with a guaranteed rate of 8 . 6 3 % compounded annually. How much should you

American General offers a 11-year annuity with a guaranteed rate of 8.63% 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?
How much should the customer pay for this annuity?

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