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You're thinking of buying a retirement annuity to supplmement your investments. You are offered a deal of $3,000 per month for 20 years starting one
You're thinking of buying a retirement annuity to supplmement your investments. You are offered a deal of $3,000 per month for 20 years starting one month after your retirement date. Your retirement is exactly 40 years from today. It would cost $2,100 today to buy the annuity. If the APR is 12% compounded monthly, is this a good deal? Show why or why not.
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