Question
An ordinary annuity selling at $10,577.28 today promises to make equal payments at the end of each year for the next seven years (N). If
An ordinary annuity selling at $10,577.28 today promises to make equal payments at the end of each year for the next seven years (N). If the annuity's appropriate interest rate (i) remains at 6.50% during this time, what will be the value of the annual annuity payment (PMT)?
a. $2,410.71
b. $1,928.57
c. $2,796.43
d. $3,717.38
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
