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Because your mother is about to retire, she wants to buy an annuity that will provide her with $75,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost her to buy the annuity today?
Please show your work. I'm interested in how the problem is solved, not just the answer, please and thank you!
Apr 22 2020 View more View Less
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