Multiple Choice
An insurance company is trying to sell you a retirement annuity. The annuity will give you 20 payments with the first payment in 12 years when you retire. The insurance firm is asking you to pay $50,000 today. If this is a fair deal,what must the payment amount be (to the dollar) if the interest rate is 8 percent?
A) $5,093
B) $12,824
C) $9,472
D) $11,874
E) $10,422
Correct Answer:
Verified
Correct Answer:
Verified
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