Multiple Choice
Elvira is considering buying a 20-year ordinary annuity to provide her with retirement income.The annuity will make annual payments of $25,000.If her opportunity cost is 7%, what is the maximum Elvira should pay for the annuity?
A) $1,096,629
B) $1,024,887
C) $283,390
D) $264,850
Correct Answer:
Verified
Correct Answer:
Verified
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