What is the most you should pay for the annuity
Problem:
You have a chance to buy an annuity that pays $5,000 at the beginning of each year for 5 years. You could earn 4.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
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You could earn 4.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
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