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Tutorial   17012

You have a chance to buy an annuity that pays $550 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments w...

Question:

You have a chance to buy an annuity that pays $550 at the beginning of each year for 3 years.  You could earn 5.5% on your money in other investments with equal risk.  What is the most you should pay for the annuity?

 

a.            $1,412.84

b.            $1,487.20

c.             $1,565.48

d.            $1,643.75

e.            $1,725.94

ATTACHMENTS