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A new investment opportunity for you is an annuity that pays $550 at the beginning...

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Question

Finance

A new investment opportunity for you is an annuity that pays $550 at the beginning of each year for 3 years. 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.

$1,412.84

b.

$1,487.20

c.

$1,565.48

d.

$1,643.75

e.

$1,725.94

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