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An insurance company offers you and end of year annuity of $48,000 per year for the next 20 years. They claim your return on the annuity is 9%. What is the most you would be willing to pay today for this annuity?
a
Amount offered every year by
insurance company
mce_markernbsp; 48,000.00
b
Period (Years)
20
c
Interest rate claimed
9%
d
Present Value of the annuity
of 20 years
$438,170.19
Note: Assumed amount received at the end of the year.
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