An annuity provides for 10 consecutive end-of-year payments of $6,500. The average general inflation rate is estimated

Question:

An provides for 10 consecutive end-of-year payments of $6,500. The average general inflation rate is estimated to be 5% annually, and the market interest rate is 11% annually. What is the worth in terms of a single equivalent amount of today's dollars?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...