A new investment opportunity for you is an annuity that pays $700 at the beginning of...

A new investment opportunity for you is an annuity that pays $700 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

Select the correct answer.

a. $1,940.02

b. $1,966.22

c. $1,953.12

d. $1,992.42

e. $1,979.32

Expert Solution

jeff jeffy answered 2 years ago

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