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Suppose you have $1,000 and the current market quarterly interest rate is 2% (not annualized). You wish to purchase an annuity that will pay you
Suppose you have $1,000 and the current market quarterly interest rate is 2% (not annualized). You wish to purchase an annuity that will pay you quarterly for the next 5 years. What will be the value of the quarterly cash payment spending all $1,000?
(a) $20
(b) $61.16
(c) $212.16
(d) 205.36
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