Question

A 15-payment annual annuity has its first payment in nine years. If the payment amount is $1,400 and the interest rate is 7 percent, what is the most you should be willing to pay today for this investment?

A) $5,825.11
B) $12,751.08
C) $6,416.67
D) $7,421.24
E) $6,935.74

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