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You are offered an annuity that will pay $34,000 per year for 12 years (the first payment will occur one year from today). If you
You are offered an annuity that will pay $34,000 per year for 12 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 11%, what is the annuity worth to you today? Next You plan to borrow $423,000 now and repay it in 20equal annual installments (payments will be made at the end of each year). If the annual interest rate is 10%, how much will your annual paymentsbe?
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