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Question An annuity makes payments of 500 at the end of every 5 years over 40 years at an effective annual interest rate of 3%.

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Question An annuity makes payments of 500 at the end of every 5 years over 40 years at an effective annual interest rate of 3%. Which one of the following formulas gives the present value of this annuity?. Possible Answers A 500240)/a57 B 100a 40/857 500a 0/5 D1000 20/05 E 1000 201

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