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You are planning to invest in an annuity product which pays $100 per year for 30 years, and the cost of this product is $2000
You are planning to invest in an annuity product which pays $100 per year for 30 years, and the cost of this product is $2000 today. Regarding to this annuity product, please answer to the following questions:
2. You are planning to invest in an annuity product which pays $100 per year for 30 years, and the cost of this product is $2,000 today. Regarding to this annuity product, please answer to the following questions: (2 points each) i. Draw the timeline for the annuity: ii. If your required rate of return is 3%, what is the PV of this annuity? iii. What is the NPV of the annuity at 3% required return? iv. Should you invest in this annuityStep by Step Solution
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