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You Buy an Annuity That Will Pay You $24,000 a Year

Question 26

Multiple Choice

You buy an annuity that will pay you $24,000 a year for 25 years.The payments are paid on the first day of each year.What is the value of this annuity today if the discount rate is 8.5 percent?


A) $241,309
B) $245,621
C) $251,409
D) $258,319
E) $266,498

Correct Answer:

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