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What is the most would pay for the annuity

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Reference no: EM133009711

An insurance agent is trying to sell you a retirement annuity, which for a lump-sum amount paid today, the annuity will provide you with $12,000 per year at the end of each of the next 25 years. You currently earn 6% on investments comparable to the retirement annuity.
(Timelines are not required.)

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Problem 1: Ignoring taxes, what is the most you would pay for this annuity?

Reference no: EM133009711

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