An annuity provides for 10 consecutive endofyear payments of $10,000. The average general inflation rate is estimated
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An annuity provides for 10 consecutive end‐of‐year payments of $10,000. The average general inflation rate is estimated to be 5% annually, and the market interest rate is 9% annually. What is the annuity worth in terms of a single equivalent amount of today’s dollars?
AnnuityAn 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,...
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Given 9 f 5 10 annuity payments in actual d...View the full answer
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