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IV. Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10

IV. Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%; (a). What should be the present value of this annuity? (b). If you are given the first payment immediately starting today, what should be the worth of this annuity?

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