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What is the most should pay for the annuity

You have a chance to buy an annuity that pays $2,500 at the end 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. $6,087.21
b. $5,493.71
c. $6,407.59
d. $5,782.85
e. $6,744.83

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the most should pay for the annuity

Reference No:- TGS0670222

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the most should pay for the annuity

Reference No:- TGS0670222

Recent Questions Asked Finance Basics

Q : What is the yeild to maturity for given face value

Q : Maximum sales growth rate

Q : Sense of student anonymity

Q : Determine the maximum price per unit

Q : What is the most should pay for the annuity

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