You just inherited some money, and a broker offers to sell you an annuity that pays $18,200 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

A. $251,761.57
B. $269,906.55
C. $226,812.23
D. $190,522.27
E. $222,275.98


Answer: C

Business

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