Question
A bank has offered to sell you an annuity today. If you buy the annuity today, it will pay you $5,000 per year for the
A bank has offered to sell you an annuity today. If you buy the annuity today, it will pay you $5,000 per year for the next 11 years. Interest rates are 11%. What is the most you should pay for the annuity today? Round your answer to the nearest dollar (zero decimal places).
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International Financial Management
Authors: Jeff Madura, Roland Fox
5th Edition
1473770505, 978-1473770508
