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b) Your friend offers to pay you an annuity of $2,500 at the end of each year fo r 3 years in return for cash

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b) Your friend offers to pay you an annuity of $2,500 at the end of each year fo r 3 years in return for cash today. You could earn 5.5% on your money in oth er investments with equal risk. What is the most you should pay for the ann uity

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