The Good Life Insurance Co. wants to sell you an annuity which will pay you $500 per quarter for 25 years. You want to earn a minimum rate of return of 5.5%. What is the most you are willing to pay as a lump sum today to buy this annuity?
A) $26,988.16
B) $27,082.94
C) $27,455.33
D) $28,450.67
E) $28,806.30
Correct Answer:
Verified
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