Your Father Is Considering Purchasing an Annuity That Pays $5

question 137

Multiple Choice

Your father is considering purchasing an annuity that pays $5, 000 at the beginning of each year for 5 years.He could earn 4.5% on his money in other investments with equal risk.What is the most he should pay for the annuity?

• A) 20, 701
• B) $21, 791
• C) $22, 938
• D) $24, 085
• E) $25, 289

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