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You are offered a 30-year annuity of $30,000 annual payments. However, the annuity begins in 5 years (you will not receive any payments for 5
You are offered a 30-year annuity of $30,000 annual payments. However, the annuity begins in 5 years (you will not receive any payments for 5 years, but will then receive $30,000 at the end of each year for 30 years with the first payment arriving exactly 5 years from today). If the discount rate is 5 percent per year (compounded annually), what is the current value of the annuity?
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