A New Investment Opportunity for You Is an Annuity That

question 107

Multiple Choice

A new investment opportunity for you is an annuity that pays $550 at the beginning of each year for 3 years.You could earn 5.5% on your money in other investments with equal risk.What is the most you should pay for the annuity?

• A) $1,412.84
• B) $1,487.20
• C) $1,565.48
• D) $1,643.75
• E) $1,725.94

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Definitions:

Rules Of Exponents

Mathematical rules that govern the operations on numbers with exponents, such as multiplication and division of powers.

Expression

A mathematical phrase that can contain numbers, variables, and operation symbols but not an equality sign.

X

In mathematics, "X" is commonly used to represent an unknown quantity or variable in equations and expressions.

Y

Often represents the vertical coordinate or dependent variable in a Cartesian coordinate system.