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You Invest $13,420 in an Annuity Contract That Earns 8

Question 107

Multiple Choice

You invest $13,420 in an annuity contract that earns 8% interest,compounded annually.You are to receive annual payments for the next ten years.How much will each of the payments be? (Future Value of $1,Present Value of $1,Future Value Annuity of $1,Present Value Annuity of $1. ) (Use appropriate factor from the PV tables.Round your final answer to the nearest dollar amount. )


A) $1,342
B) $1,449
C) $1,459
D) $2,000

Correct Answer:

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