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Your friend is thinking of buying an annuity that pays $4175 at the end of each year for 3 years. He could earn 6.55% on

Your friend is thinking of buying an annuity that pays $4175 at the end of each year for 3 years. He could earn 6.55% on his money in other investments with equal risk. What is the most he should pay for this investment?

a. $11,619

b. $12,525.

c. $11,253

d. $11,047.

e. $12,305

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