Question: You are considering the purchase, for $15,000, of an annuity that pays $2500 per year for the next 10 years. You want to have a

You are considering the purchase, for $15,000, of an annuity that pays $2500 per year for the next 10 years. You want to have a real rate of return of 5%, and you estimate inflation will average 6% per year over the next 10 years. Should you buy the annuity?

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