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Question
Your friend offers to pay you an annuity of $2,500 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?a. $5,493.71
b. $5,782.85
c. $6,087.21
d. $6,407.59
e. $6,744.83
Answer
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