American_Bankers_Association
CTFA · Question #288
CTFA Question #288: Real Exam Question with Answer & Explanation
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Question
You want to buy an ordinary annuity that will pay you $4,000 a year for the next 20 years. You expect annual interest rates will be 8 percent over that time period. The maximum price you would be willing to pay for the annuity is closest to:
Options
- A$32,000
- B$39,272
- C$40,000
- D$80,000
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