You have the opportunity to purchase an annuity that will pay $1,000 cash in November...
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You have the opportunity to purchase an annuity that will pay $1,000 cash in November 2020 and then continue to make payments of $1,000 each month until the final payment is made in November 2021. Assume today is November 2019 and interest rates are 3% p.a. compounded monthly. If the investment has a price of $13,000, would you buy it?
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