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Your friend offers to pay you an annuity of $2,800 at the end of each year for 3 years in return for cash today. You
Your friend offers to pay you an annuity of $2,800 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Select the correct answer
. a. $7,560.21 b. $7,557.21 c. $7,554.21 d. $7,566.21 e. $7,563.21
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