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please help immediately thank you Jackie's daughter starts college in 5 years for which she will need $25,000 payable at the end of each of
please help immediately thank you
Jackie's daughter starts college in 5 years for which she will need $25,000 payable at the end of each of the 4 years. Suppose she can buy an annuity in 5 yrs. that will enable her to make the four $25,000 annual payments. Draw a timeline for all cash flows. What will be the cost of the annuity 5 years from today? What is the most she should be willing to pay for it if purchased today? Assume a discount rate of 8% during these 9 years Step by Step Solution
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