You Have a Chance to Buy an Annuity That Pays

question 129

Multiple Choice

You have a chance to buy an annuity that pays $24,000 at the beginning of each year for 5 years.You could earn 4.5% on your money in other investments with equal risk.What is the most you should pay for the annuity?

• A) $110,100.62
• B) $128,817.72
• C) $131,019.73
• D) $114,504.64
• E) $94,686.53

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