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Montreal Financial Services Company Offers a 50-Year Annuity of $50,000

Question 38

Multiple Choice

Montreal Financial Services Company offers a 50-year annuity of $50,000 per year with the first payment on January 1 next year.If your opportunity costs are constant over time, the price you are willing to pay for this annuity ______ over time.


A) increases
B) decreases
C) stays the same
D) can't determine without the opportunity cost

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