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You have the opportunity to invest in several annuities. Which of the following 10-year annulties has the greatest present value (puy? Assume that an annuities
You have the opportunity to invest in several annuities. Which of the following 10-year annulties has the greatest present value (puy? Assume that an annuities eam the same positive interest rote. An annuity that pays $1,000 at the end of each year An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year An annulty that pays $500 at the beginning of every $1 months You bought an annuity selling at $11,635.16 today that promises to make etual payments at the beginning af each year for the next four years (W), tf the annuity's apsropiate interest rate (1) remains at 5.00% during this time, then the value of the annual annuty payment (hMT) is You just won the fottery, Congratulationst The jackpot is 535,000,000, paid in four equal annual payments. The first payment on the iottery jachpet wis be made today. In present value terms, you really won -assuming onnual interest rate of 5.00%
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