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You are the manager of an annuity settlement company. Bob Logan just won the state lottery which promises to pay him $1,000 per year for 20 years, starting from today, and $2,000 per year for years 21-45, given a 6.58% discount rate. Your company wants to purchase the proceeds from the lottery from Jim. What is the most that your company can offer?

a. $13,770.90

b. $15,780.51

c. $16,940.38

d. $18,884.79

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M940191

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