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Question
Cootie, a 65 year-old disable retiree, has saved $1,250,000. He expects he will survive another 10 years and wishes to receive 10 annual annuity payments, beginning in one year later. If the interest rate is 5.75%, how much does he can expect to receive per year?a. $123,988
b. $133,345
c. $149,987
d. $167,829
e. $178,692
Answer
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