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Question
An insurance company is trying to sell you a retirement annuity. The annuity will give you 20 payments with the first payment in 12 years when you retire. The insurance firm is asking you to pay $50,000 today. If this is a fair deal, what must the payment amount be (to the dollar) if the interest rate is 8%?
A. $5,093
B. $12,824
C. $9,472
D. $11,874
E. $10,422
Answer
This answer is hidden. It contains 33 characters.
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