Question
Assume that you are offered an annuity that pays $100 at the end of each year for 10 years. You could earn 8% on your
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Assume that you are offered an annuity that pays $100 at the end of each year for 10 years. You could earn 8% on your money in other investments with equal risk. What is the most you should pay for the annuity? If the payments began immediately, how much would the annuity be worth? Post your calculations from ba 2 plus calculator if possible
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Corporate Financial Management
Authors: Douglas R. Emery, John D. Finnerty, John D. Stowe
4th Edition
1935938002, 9781935938002
