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Question
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
Answer
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