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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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