Question
I posted this question several times but people who solved this question kept giving me wrong answers. please take care of this question. A University
I posted this question several times but people who solved this question kept giving me wrong answers. please take care of this question.
A University is offering a charitable gift program. A former student who is now 50 years old is consider the following offer: The student can invest $7,600.00 today and then will be paid a 9.00% APR return starting on his 65th birthday (i.e For a $10,000 investment, a 9% rate would mean $900 per year). The program will pay the cash flow for this investment while you are still alive. You anticipate living 25.00 more years after your 65th birthday. The former student wants a return of 5.00% on his investments, but would like to consider this opportunity.
Using the student's desired return, what is the value of this deferred annuity today on his 50th birthday?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started