Question
You inherit an annuity that will pay you $10,000 per year for 20 years, with the first payment being made today. A fair return in
You inherit an annuity that will pay you $10,000 per year for 20 years, with the first payment being made today.
A fair return in the market approximates 8%.
How much should you ask for it if you decided to sell it?
a. $112,577.83
b. $106,035.99
c. $102,736.54
d. $114,769.58
e. $99,556.30
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Public Finance
Authors: Harvey Rosen, Robert Guell, Ted Gayer
9th Edition
0073511358, 9780073511351
