Question
You just inherited some money, and a broker offers to sell you an annuity that pays $16,800 at the end of each year for 20
You just inherited some money, and a broker offers to sell you an annuity that pays $16,800 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
| a. | $180,054.02 | |
| b. | $255,425.46 | |
| c. | $236,582.60 | |
| d. | $244,957.21 | |
| e. | $209,365.13 |
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
2nd Edition
0072318252, 9780072318258
