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Farm Boys Insurance Co. wants to sell you an annuity that pays $1,500 per quarter for 20 years. You expect to earn a minimum rate
Farm Boys Insurance Co. wants to sell you an annuity that pays $1,500 per quarter for 20 years. You expect to earn a minimum rate of return of 6% APR, compounded quarterly. The most you are willing to pay for this annuity today is:
Select one:
a. $110,000
b. $130,000
c. $90,000
d. $70,000
e. $50,000
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