Q.5. You have a chance to buy an annuity that pays $1,200 at the end of each year for 3 years. You
could earn 5.5% on your money in other investments with equal risk. What is the most you should pay
for the annuity?
a. $2,636.98
b. $2,775.77
c. $2,921.86
d. $3,075.64
e. $3,237.52