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What is the most should pay for the annuity

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Reference no: EM132965106

Problem 1: A new investment opportunity for you is an annuity that pays $2,450 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

a. $6,925.78

b. $6,957.58

c. $6,941.68

d. $6,989.38

e. $6,973.48

Reference no: EM132965106

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