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You have a chance to buy an annuity that pays $4,000 at the end of each year for 3 years. You could earn 8% on

You have a chance to buy an annuity that pays $4,000 at the end of each year for 3 years. You could earn 8% on your money in other investments with equal risk. What is the most you should pay for the annuity today?

a $11,133

b $14,024

c $12,986

d $10,308

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