Question: What is the maximum price you should pay for a contract guaranteeing month-end payments of $500 for the next 12 years if you require a

What is the maximum price you should pay for a contract guaranteeing month-end payments of $500 for the next 12 years if you require a rate of return of at least 8% compounded monthly for the first five years and at least 9% compounded monthly for the next seven years?

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