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For $10,000,you Can Purchase a Five-Year Annuity That Will Pay

Question 43

Multiple Choice

For $10,000,you can purchase a five-year annuity that will pay $2,504.57 per year for five years.The payments occur at the end of each year.Calculate the effective annual interest rate implied by this arrangement.


A) 8%
B) 9%
C) 10%

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