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Suppose you have three annuities, each of which will begin making payments one year from now. Annuity A will pay 1133 dollars every year.
Suppose you have three annuities, each of which will begin making payments one year from now. Annuity A will pay 1133 dollars every year. Annuity B will pay 1030 dollars every year, for twice as long as Annuity A. Annuity C will pay 1230 dollars every year, for 3 times as long as Annuity A. The present value of Annuity B is 45 percent greater than the present value of Annuity A. If all three annuities will earn interest at the same rate, what is the present value now of the final payment of Annuity C? Answer = dollars.
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