Question
Someone offers to sell you an annuity for $6,036 in 5 years (i.e., you will buy it at t=5). The annuity pays $2300 per year,
Someone offers to sell you an annuity for $6,036 in 5 years (i.e., you will buy it at t=5). The annuity pays $2300 per year, for n years, starting in year 6, and we assume a 7.0% discount rate. About how many payments are included in the annuity in this situation?
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In the scenario described the annuity offered wouldnt provide any payments Heres why An annuity is t...
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
