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Estimating the time period

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You want to buy an ordinaryannuity that will pay you $4,000 a year for the next 20 years. You expect annual interest rates will be 8 percent over that time period. The maximum price you would be willing to pay for the annuity is closest to

  • $32,000.
  • $39,272.
  • $40,000.
  • $80,000.

Reference no: EM131038484

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