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Your friend offers to pay you an annuity of $4,900 at the end of each year for 3 years in return for cash today. You
Your friend offers to pay you an annuity of $4,900 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. $13,244.47 b. $13,236.27 c. $13,228.07 d. $13,252.67 e. $13,219.87
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