Question
You have a chance to buy an annuity that pays $85,000 at the beginning of each year for 20 years. You could earn 12.5% on
You have a chance to buy an annuity that pays $85,000 at the beginning of each year for 20 years. You could earn 12.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
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Financial Management Theory And Practice
Authors: Prasanna Chandra
8th Edition
0071078401, 978-0071078405
