Question
You have a chance to buy an annuity that pays $1,400 at the beginning of each year for 3 years. You could earn 5.5% on
You have a chance to buy an annuity that pays $1,400 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
| a. | $4,223.94 | |
| b. | $4,781.82 | |
| c. | $3,984.85 | |
| d. | $3,745.76 | |
| e. | $3,945.00 |
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The Oxford Handbook Of Quantitative Asset Management
Authors: Bernd Scherer, Kenneth Winston
1st Edition
0199553432, 978-0199553433
