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Practice Problem 54 Elvira is considering buying a 20 year ordinary annuity to provide her retirement income. The annuity will make annual payments of $25,000.

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Practice Problem 54 Elvira is considering buying a 20 year ordinary annuity to provide her retirement income. The annuity will make annual payments of $25,000. If her opportunity cost is 7%, what is the maximum she should pay for the annuity

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