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Problem:

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $5,100 of income a year for 22 years, with the first payment coming immediately. The going rate on such annuities is 5.25%.

Required:

How much would it cost him to buy the annuity today?

$60,093.31
$68,382.04
$84,959.50
$69,072.76
$54,567.48

Note: Explain all steps comprehensively.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149358

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