A new investment opportunity for you is an annuity that pays $1,100 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. $3,141.25     b. $3,130.95     c. $3,120.65     d. $3,110.35     e. $3,100.05

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A new investment opportunity for you is an annuity that pays $1,100 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. $3,141.25  
  b. $3,130.95  
  c. $3,120.65  
  d. $3,110.35  
  e. $3,100.05
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