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Annual Payment Years Interest Rate I 10 40 $1,900 6,000 2,950 6,400 8% 9 6 10 9 30 LO 1 9. Calculating Annuity Values. If

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Annual Payment Years Interest Rate I 10 40 $1,900 6,000 2,950 6,400 8% 9 6 10 9 30 LO 1 9. Calculating Annuity Values. If you deposit $5,000 at the end of each year for the next 20 years into an account paying 9.6 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years? 10. Calculating Perpetuity Values. Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. If the required return on this investment is 6 percent, how much will you pay for the policy? LO1

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