Question regarding the annuity
You have a chance to buy an annuity that pays $1,000 at the end of each year for three 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?
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You have a chance to buy an annuity which pays $1,000 at the end of each year for the three years. You could earn 5.5% on your money in other investments with equal risk.
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