What is the most you are willing to pay as a lump sum today


The Good Life Insurance Co. wants to sell you an annuity which will pay you $640 per quarter for 25 years. You want to earn a minimum rate of return of 4.9 percent. What is the most you are willing to pay as a lump sum today to buy this annuity?

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Finance Basics: What is the most you are willing to pay as a lump sum today
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