An insurance annuity offers to pay you $1,000 per quarter for 20 years. If you want to earn a rate of return of 6.5 percent, compounded quarterly, what is the most you are willing to pay as a lump sum today to obtain this annuity?
A) $32,008.24
B) $34,208.16
C) $44,591.11
D) $43,008.80
E) $38,927.59
Correct Answer:
Verified
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