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Mr . Purdy purchased a 5 1 0 0 , 0 0 0 , 5 - year accumulating deferred annuity with a 5 % interest

Mr. Purdy purchased a 5100,000,5-year accumulating deferred annuity with a 5% interest rate maturing in 5 years. The value at maturity would be 5127628. At the end of 4 years, the value had climbed to $121.550.48 but interest rates had increased to 6%. Mr. Purdy decided that he wished to close the 5% fund so that he could reinvest in the current 6% fund. What is the market value adjustment that Mr. Purdy would pay at the end of 4 years to break his contract and receive his money?
Seleci one.
(7)51148
b.5682
c.5574
diso:
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