Question
Assume you are to receive a 20-year annuity with annual payments of $50. The first payment will be received at the end of Year 1,
Assume you are to receive a 20-year annuity with annual
payments of $50. The first payment will be received at the end of Year 1, and
the last payment will be received at the end of Year 20. You will invest each
payment in an account that pays 10 percent. What will be the value in your
account at the end of Year 30? Solve it using PV of annuity formula for first
20 years annuity payments?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
