Question: Your elderly mother is considering purchasing an annuity. It will make annual payments for 1 5 years with the first payment occurring in nine years.

Your elderly mother is considering purchasing an annuity. It will make annual payments for 15 years with the first payment occurring in nine years. If the interest rate is seven percent and the payments will be $1,400, what is the maximum amount she should pay today for this annuity?
A.6416.67
B.5825.11
C.12751.58
D.6935.74
E.7421.24

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