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You are offered three annuities (these make equal payments over a specific period). Using an annual 5.5% discount rate, calculate each annuity's price: # Price

You are offered three annuities (these make equal payments over a specific period). Using an annual 5.5% discount rate, calculate each annuity's price: # Price ($) Payments ($/month) Life (yrs.) 1 ? 195 6 2 ? 200 (growing @1%/yr.) 5 3 ? 135 (growing @2.5%/yr.) Forever.

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