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You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities
You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays exist500 at the beginning of every six months An annuity that pays exist1,000 at the beginning of each year An annuity that pays exist1,000 at the end of each year An annuity that pays exist500 at the end of every six months An ordinary annuity selling at exist6, 824.13 today promises to make equal payments at the end of each year for the next eight years (N). If the annuity's appropriate interest rate (I) remains at 8.00% during this time, the annual annuity payment (PMT) will be _____. You just won the lottery. Congratulations! The jackpot is exist35,000,000, paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won assuming annual interest rate of 8.00%. exist27, 152, 869.01 exist46, 535, 245.875 exist50, 258, 065.545 exist25, 141, 545.38
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