Question
An annuity provides for 10 consecutive end-of-year payment of $85,000 in actual dollars. The general inflation rate is 2% annually, and the inflation-free interest rate
"An annuity provides for 10 consecutive end-of-year payment of $85,000 in actual dollars. The general inflation rate is 2% annually, and the inflation-free interest rate is 6.4% annually. What is the present value of the annuity after considering the effects of inflation?"
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Introduction To Institutions Management And Investments
Authors: Herbert Mayo
10th International Edition
1111820643, 9781111820640
