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Your friend promises you an annuity of 10 payments. If the first payment of $10 occurs in year 1 and the interest rate is 5%,

Your friend promises you an annuity of 10 payments. If the first payment of $10 occurs in year 1 and the interest rate is 5%, which of the following is right about its present value at time zero?

a.$77.22

b.$114.09

c.$50.07

d.$24.89

e.None of the above

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