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Augustine is interested in whether he should purchase an annuity or an annuity due today. The annuity that he is considering will pay $50 per year starting in 2 year and ending in 5 years. The annuity due will begin payments of $50 per year for 4 years starting in 1 year. With a discount rate of 9.23%, which investment should he purchase today and why?

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Financial Management, Finance

Category:- Financial Management
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