Your Investment Advisor Wants You to Purchase an Annuity That

question 93

Multiple Choice

Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. You require a 7% return. The present value annuity factor at 7% for 10 years is 7.0236. What is the most you should pay for this investment?

• A)$49,179
• B)$175,590
• C)$201,000
• D)$225,682
• E)$250,000

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