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An Insurance Company Offers You an End of Year Annuity

Question 46

Multiple Choice

An insurance company offers you an end of year annuity of $48,000 per year for the next 20 years.They claim your return on the annuity is 9 percent.What should you be willing to pay today for this annuity?


A) $429,600
B) $438,144
C) $408,672
D) $398,144

Correct Answer:

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