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You have been hired by Tesla to manage its pension fund obligations. You estimate that the firm will have an obligation to pay out a
You have been hired by Tesla to manage its pension fund obligations. You estimate that the firm will have an obligation to pay out a lump sum (one time payment) of $50M in 10 years. The interest rate that you can make on your investments currently is 8 percent. Which of the following comes closest to the amount that you would you need to set aside in an annuity each year for the next ten years to get to $50M in ten years? Select one: O a. $335,818 b. $3,451,474 O c. $690,295 d. $4,631,935
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