Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. You require a 7% return. The present value annuity factor at 7% for 10 years is 7.0236. What is the most you should pay for this investment?

A. $49,179
B. $175,590
C. $201,000
D. $225,682
E. $250,000


Answer: B

Business

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