Question
American General offers a 17-year annuity with a guaranteed rate of 8.94% compounded annually. How much should you pay for one of these annuities if
American General offers a 17-year annuity with a guaranteed rate of 8.94% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1800 annually over the 17 year period?
How much should a customer pay for this annuity?
$___________ (Round to the nearest cent
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An Introduction to the Mathematics of Financial Derivatives
Authors: Ali Hirsa, Salih N. Neftci
3rd edition
012384682X, 978-0123846822
