Question
You have a chance to buy an annuity that pays $4,000 per year at the end of each year for 4 years. You could earn
You have a chance to buy an annuity that pays $4,000 per year at the end of each year for 4 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
A.) $14,183.80
B.) $14,892.99
C.) $15,200.00
D.) $16,000.00
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
8th Edition
1264098723, 978-1264098729
