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Your father is about to retire, and he wants to buy an annuity that will provide him with $52,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 5.95%. How much would it cost him to buy the annuity today?   a. $707,644.77     b. $873,949.58     c. $679,475.65     d. $719,904.45     e. $667,904.45

Your father is about to retire, and he wants to buy an annuity that will provide him with $52,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 5.95%. How much would it cost him to buy the annuity today?   a. $707,644.77     b. $873,949.58     c. $679,475.65     d. $719,904.45     e. $667,904.45

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Your father is about to retire, and he wants to buy an annuity that will provide him with $52,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 5.95%. How much would it cost him to buy the annuity today?
  a. $707,644.77  
  b. $873,949.58  
  c. $679,475.65  
  d. $719,904.45  
  e. $667,904.45  
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