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Rex is considering investing in an annuity being offered by Mawson Investments Ltd. The annuity will pay him $8,000 per half year for 3 years.
Rex is considering investing in an annuity being offered by Mawson Investments Ltd. The annuity will pay him $8,000 per half year for 3 years. Rex is trying to work out how much this annuity is worth. He thinks that he should receive a return equivalent to an effective annual interest rate of 9.0% per annum. What is the value of this annuity to Rex?
Select one:
a. $41,562.13
b. $41,392.35
c. $41,700.54
d. $41,262.98
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