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New Jersey Mutual has offered you a single premium annuity that will pay you $12,000 per year (end of year) for the next 15 years.

New Jersey Mutual has offered you a single premium annuity that will pay you $12,000 per year (end of year) for the next 15 years. If you must pay $109,296 today for this annuity, what is your expected rate of return?

a.

8%

b.

9%

c.

7%

d.

10%

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