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Have a Chance to Buy an Annuity That Pays $5,000

Question 7

Multiple Choice

have a chance to buy an annuity that pays $5,000 at the beginning of each year for 5 years.You could earn 4.5% on your money in other investments with equal risk.What is the most you should pay for the annuity?


A) 20,701
B) $21,791
C) $22,938
D) $24,085
E) $25,289

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