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An insurance agent makes offer

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An insurance agent makes this offer: If you pay him $50,000 today, we will pay you annual annuity payments of $5,000 for 15 years. If you can earn 5.13% on alternative investments, is this a good deal?

A. Yes, it is a good deal as you earn more than 5.13%

B. No, it is not a good deal because you earn less than 5.13%.

C. Yes, it is a good deal because you will get some money in the future.

Reference no: EM13849630

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