Money in other investments with equal risk

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Reference no: EM131019126

You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

a. $50,753

b. $53,424

c. $56,236

d. $59,195

e. $62,311

Reference no: EM131019126

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