Question
An annuity provides for 10 consecutive end-of-year payments of $72,000.The average general inflation rate is estimated to be 4% annually, and the market interest rate
An annuity provides for 10 consecutive end-of-year payments of $72,000.The average general inflation rate is estimated to be 4% annually, and the market interest rate is 8% annually. What is the annuity worth in terms of a single equivalent amount of todays dollars?
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
