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Silva Is Contemplating to Buy a 20 Year Annuity Paying

Question 63

Multiple Choice

Silva is contemplating to buy a 20 year annuity paying $2500 at the end of each month. What amount will be required to purchase the annuity, if the annuity provides a return of 6.75% compounded annually?


A) $334 000
B) $47 246
C) $600 000
D) $37 037
E) $567 436

Correct Answer:

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