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Posted on Jul 26, 2024

you want to buy an ordinary annuity that would pay you $4000 a year for the next 20 years. you expect an annual interest rate

you want to buy an ordinary annuity that would pay you $4000 a year for the next 20 years. you expect an annual interest rate of 8 percent over that time period. The maximum price you will be willing to pay for the annuity closet to

a.32000

b.39,272

c.40,000

d. 80,000

(please I am very much interested in the workings)

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