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Q2. You parents need $50,000 each year for their retirement for the next 20 years. The Prudential Insurances offers an annuity contract that yields 6%

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Q2. You parents need $50,000 each year for their retirement for the next 20 years. The Prudential Insurances offers an annuity contract that yields 6% each year. They need to buy an annuity contract today in the amount of: a. $286,748.03 b. $573,496.06 c. More than $600,000 d. Less than $200,000 e. None of the above Use the following information for questions 3-5. The expected rates of return are 10%, 12%, 16%, 8% and 2%. There are equal probabilities in each case

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