Multiple Choice
How much would you be willing to pay (rounded to the nearest dollar) for a 20-year ordinary annuity if the payments are $4,500 per year and you want to earn a rate of return equal to 5.5% per year?
A) $84,500
B) $63,445
C) $56,734
D) $53,777
Correct Answer:
Verified
Correct Answer:
Verified
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