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rk 3.4 K American General offers a 9-year annuity with a guaranteed rate of 8.96% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1900 annually over the 9 year period? How much should a customer pay for this annuity? (Round to the nearest cent.)

rk 3.4 K American General offers a 9-year annuity with a guaranteed rate of 8.96% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1900 annually over the 9 year period? How much should a customer pay for this annuity? (Round to the nearest cent.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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rk 3.4 K American General offers a 9-year annuity with a guaranteed rate of 8.96% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1900 annually over the 9 year period? How much should a customer pay for this annuity? $ (Round to the nearest cent.)
Transcribed Image Text:rk 3.4 K American General offers a 9-year annuity with a guaranteed rate of 8.96% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1900 annually over the 9 year period? How much should a customer pay for this annuity? $ (Round to the nearest cent.)
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