After Receiving a Reward for Information Leading to the Arrest

question 17

Multiple Choice

After receiving a reward for information leading to the arrest of a notorious criminal, you are considering investing it in an annuity that pays $5, 000 at the end of each year for 20 years.You could earn 5% on your money in other investments with equal risk.What is the most you should pay for the annuity?

• A) $50, 753
• B) $53, 424
• C) $56, 236
• D) $59, 195
• E) $62, 311