Question
A financial contract that pays $2,000 at the beginning of each year for 50 years is called a(n) __ and has a value today of
A financial contract that pays $2,000 at the beginning of each year for 50 years is called a(n) __ and has a value today of $__ at a required return of 12%. (round to the nearest dollar)
A. Annuity due; $18,602
B. Annuity due; $16,609
C. Annuity in arrears; $16,609
D. Ordinary annuity; $16,609
E. Perpetuity; $18,602
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
