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Your banker approaches you with an annuity investment. She said you will receive $100,000 in cash in 5 years. To receive that lump sum money,
Your banker approaches you with an annuity investment. She said you will receive $100,000 in cash in 5 years. To receive that lump sum money, you need to pay $18,000 each year for 5 years. The first payment will be made today. The current market return rate (or discount rate) is 7%. Will you investin this annuity or not? Show your work below
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