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You have a chance to buy an annuity that pays $3,300 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 $3,300 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?
| a. | $9,392.86 |
| b. | $7,420.36 |
| c. | $7,138.57 |
| d. | $10,426.07 |
| e. | $10,801.78 |
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