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A Life Insurance Company Advertises That $75,000 Will Purchase a 25-Year

Question 71

Multiple Choice

A life insurance company advertises that $75,000 will purchase a 25-year annuity paying $456.10 at the end of each month. What monthly compounded nominal rate of return does the annuity investment earn?


A) 5.4%
B) 6.2%
C) 5.7%
D) 5.6%
E) 4.5%

Correct Answer:

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