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You just received an insurance settlement, and a broker offers to sell you an annuity that pays $ 8 0 , 0 0 0 at

You just received an insurance settlement, and a broker offers to sell you an annuity that pays $

80, 000

at the end of each year for

10

years. You could earn

7.15 %

on your money in other investments with equal risk. What is the most you should pay for the annuity?

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=

PMT

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