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You have the opportunity to invest in several annulties. Which of the following 10-year annuities has the greatest present value (PV)? Assume that atl annuities
You have the opportunity to invest in several annulties. Which of the following 10-year annuities has the greatest present value (PV)? Assume that atl annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of each year An annu ty that pays $500 at the end of every six months An annuity that pays $500 at the beginning of every sox months You bought an annuity selling at $14,112.74 today that promises to make equal payments at the beginning of each year for the next twelve years ( N ). If the annuity's appropriate interest rate ( T ) remains at 11.00% during this time, then the value of the annuaf annuity payment (PMT) is You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in twelve 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 11.00%
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