Question
A. A contract features a lump-sum future flow of $46,000 three years from today. If you can now purchase that flow for $42,201.84, then what
A. A contract features a lump-sum future flow of $46,000 three years from today. If you can now purchase that flow for $42,201.84, then what annual implied return would you earn on this contract? B. An annuity contract will make 8 annual payments and the first payment occurs exactly a year from today. If the annuity has a 9.2% rate and a current PV or price of $308.98, then what must be the size of its annual payments? C. An annuity makes monthly payments of $235 at the end of every month. If it has a term of 60 months and an annual interest rate of 6%, then what is its present value? D. What does the previous answers tells u?
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