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Vicky is considering investing in an annuity being offered by Bassein Investments Ltd. The annuity will pay her $500 per week for 4 years. Vicky
Vicky is considering investing in an annuity being offered by Bassein Investments Ltd. The annuity will pay her $500 per week for 4 years. Vicky is trying to work out how much this annuity is worth. She thinks she should receive a return equivalent to an effective annual interest rate of 5.2% per annum. What is the value of this annuity to Vicky?
Select one:
a. $93,854.27
b. $96,357.26
c. $94,087.93
d. $92,958.50
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