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    Purchase of annuity

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    Your uncle is about to retire, and he wants to buy an annuity that will provide him with $73,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?

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    Annuity
    Your uncle is about to retire, and he wants to buy an annuity that ...

    Solution Summary

    Response provides steps to compute the value of an annuity

    $2.19

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