Question
You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20
You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 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?
****PLEASE SHOW HOW TO CALCULATE ON FINANCIAL CALCULATOR, LIKE WHAT KEYS SHOULD BE PRESSED FOR N, FV, PMT..ETC****
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
8th Global Edition
1292155035, 9781292155036
