Description
Approximately how much should you pay for any annuity that promises to pay you $250 every year for 10 years if you require a 5% return on the investment?
A) $407 B) $250 C) $3,145 D) $1,930 E) $154
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250[1.05-1]/0.05
=250/0.05[1.05]
250
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