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American General offers a 18-year annuity with a guaranteed rate of 5.85% compounded annually. How much should you pay for one of these annuities if

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American General offers a 18-year annuity with a guaranteed rate of 5.85% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $700 annually over the 18 year period? How much should a customer pay for this annuity? (Round to the nearest cent.)

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