The first option is the amount of $4400 in 7 years. The second option is to receive the amount of $1100 immediately followed by some unknown annuity that is paid at the end of each year for 7 years with the first annuity payment received at the end of year 1. Using an interest rate of 6.50%, determine the unknown annuity amount for the second option that would make the present value of both options equivalent.

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DO NOT USE A DOLLAR SIGN OR A COMMA IN YOUR ANSWER. Work your analysis out using at least four decimal points of accuracy. CHECK ANSWER

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