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Assume you have $25,000 in savings that you are going to set aside in a 15-year 5% CD (pays principal and interest at maturity and

Assume you have $25,000 in savings that you are going to set aside in a 15-year 5% CD (pays principal and interest at maturity and compounds quarterly). When the CD matures you plan to take the total and purchase an annuity. You want to buy a 10 year ordinary annuity. You assume that in 15 years annuities will be paying 5% annual interest. What will your annuity pay you per year?

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