Question: An individual who purchases an annuity is exchanging current dollars for future payments that will be made monthly. Based on a monthly payment of $1,500,

An individual who purchases an annuity is exchanging current dollars for future payments that will be made monthly. Based on a monthly payment of $1,500, a life expectancy (length of the annuity) of 15 years, and a discount rate of 6.5%, how much would an individual expect to pay for the annuity?

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