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You are offered a 18-year annuity of $10,000 annual payments. However, the annuity begins in 7 years (you will not receive any payments for 7
You are offered a 18-year annuity of $10,000 annual payments.
However, the annuity begins in 7 years (you will not receive any payments for 7 years, but will then receive $10,000 at the end of each year for 18 years. If the discount rate is 6% per year (compounded annually), what is the current value of the annuity?
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