Question
You receive $10K today, $20k five years from now, and $50K ten years later. An option is to receive a 15-year annuity with the first
You receive $10K today, $20k five years from now, and $50K ten years later. An option is to receive a 15-year annuity with the first payment being received ten years from now.
If you want 6% annual return on your investment, how much must the annuity pay you each year for you to select that option?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
