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Business, 22.07.2021 20:30 jagmeetcheema

Nicki​ Johnson, a sophomore mechanical engineering​ student, receives a call from an insurance​ agent, who believes that Nicki is an older woman ready to retire from teaching. He talks to her about several annuities that she could buy that would guarantee her an annual fixed income. The annuities are as follows: INITIAL AMOUNT OF DURATION
PAYMENT MONEY OF ANNUITY
Annuity ANNUITY Received (YEARS)
(AT t​ = 0) YEAR
A $50, 000 $8,500 12
B $ 60,000 $ 7,000 25
C $ 70,000 $ 8,000 20
If Nicki could earn 11 percent on her money by placing it in a savings​ account, should she place it instead in any of the​annuities? Which​ ones, if​ any? Why?
What rate of return could Nicki earn on her money if she place it in annuity A with ​$8,500 payment per year and 12 years​ duration?

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