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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 $1,000 at the beginning of each year An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the end of each year O An annuity that pays $500 at the beginning of every six months An ordinary annuity selling at $5,762.17 today promises to make equal payments at the end of each year for the next four years (N). If the annuity's appropriate interest rate (1) remains at 5.00% during this time, the annual annuity payment (PMT) will be You just won the lottery. Congratulations! The jackpot is $60,000,000, paid in four 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 5.00%
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