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Value of a retirement annuity Personal Finance ProblemAn insurance agent is trying to sell you an immediate-retirement annuity, which for a single amount paid today

Value of a retirement annuityPersonal Finance ProblemAn insurance agent is trying to sell you an immediate-retirement annuity, which for a single amount paid today will provide you with

$17,500

at the end of each year for the next

years. You currently earn

on low-risk investments comparable to the retirement annuity. Ignoring taxes, what is the most you would pay for this annuity?

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