You could earn 6 on your money in other investments with


You have a chance to buy an annuity that pays $1,000 at the end of each year for 5 years. You could earn 6% on your money in other investments with equal risk. What is the most you should pay for the annuity?

a. $3,324.89

b. $2,591.45

c. $4,212.36

d. $2,011.87

e. $3,854.13

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Financial Management: You could earn 6 on your money in other investments with
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