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The Rip Off Insurance Company Will Pay You $1500 a Year

Question 15

Multiple Choice

The Rip Off Insurance Company will pay you $1500 a year for twenty years in exchange for $19 000 today.What interest rate are they paying on this annuity?


A) 2.99 per cent
B) 3.30 per cent
C) 3.67 per cent
D) 4.23 per cent
E) 4.81 per cent

Correct Answer:

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