How much would it cost her to buy the annuity


Because your mother is about to retire, she wants to buy an annuity that will provide her with $75,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost her to buy the annuity today?

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Financial Management: How much would it cost her to buy the annuity
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