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Problem:

The Good Life Insurance Co. wants to sell you an annuity which will pay you $790 per quarter for 30 years. You want to earn a minimum rate of return of 6.4 percent.

Required:

Question 1: What is the most you are willing to pay as a lump sum today to buy this annuity? Please provide all workings and formulas and also provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146516

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