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please show work! they are already answered because this is a study quiz Christine is considering buying a 20 -year ordinary annuity to provide her
please show work! they are already answered because this is a study quiz
Christine is considering buying a 20 -year ordinary annuity to provide her with retirement income. The annuity will make annual payments of $25,000. The applicable interest rate is 7%, what is the maximum Christine should pay for this annuity today? x a) $1,024,887 b) $283,390 c) $1,096,629 d) $264,850 Question 2 Elvira is considering buying a 20-year annuity due to provide her retirement income. The annuity will make annual payments of $25,000. If her applicable interest rate is 7%, what is the present value of the annuity? a) $1,096,629 b) $264,850 c) $1,024,887 d) $283,390Step by Step Solution
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