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How much would it cost him to buy the annuity today

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Question - Your father is about to retire, and he wants to buy an annuity that will provide him with $50,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 6%. How much would it cost him to buy the annuity today?

A. $416,110.34

B. $488,349.15

C. $607,905.82

D. $615,976.84

Reference no: EM132040172

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