Immediate-retirement annuity

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Reference no: EM131009937

An insurance agent is trying to sell you an immediate-retirement annuity, which for a single amount paid today will provide you with $7,200 at the end of each year for the next 35 years. You currently earn 4% on low-risk investments comparable to the retirement annuity. Ignoring taxes, what is the most you would pay for this annuity?

Reference no: EM131009937

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