Question
Consider two (2) annuities. A $1,000 monthly annuity over 10 years with a 6.00% interest rate. A $1,000 monthly annuity due over 10 years with
- Consider two (2) annuities.
A $1,000 monthly annuity over 10 years with a 6.00% interest rate.
A $1,000 monthly annuity due over 10 years with a 6.00% interest rate.
Calculate the Present Value of both annuities.
Calculate the Future Value of both annuities.
Which annuity would you choose to pay?
Which annuity would you choose to receive?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
