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You have a chance to buy an annuity that pays $2,450 at the beginning of each year for 3 years. You could earn 5.5% on

You have a chance to buy an annuity that pays $2,450 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Hint: First payment is made today.

$6,973.48

$7,531.36

$6,903.75

$8,298.45

$8,228.71

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