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Problem 5 - 5 1 ( LO 5 - 2 ) ( Algo ) [ The following information applies to the questions displayed below. ]

Problem 5-51(LO 5-2)(Algo)
[The following information applies to the questions displayed below.]
Anne purchased an annuity from an insurance company that promised to pay her $32,000 per year for the
next 10 years. Anne paid $220,800 for the annuity, and in exchange she will receive $320,000 over the
term of the annuity.
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