Question
You want to buy an ordinaryannuity that will pay you $4,000 a year for the next 20 years. You expect annual interest rates will be
You want to buy an ordinaryannuity that will pay you $4,000 a year for the next 20 years. You expect annual interest rates will be 8 percent over that time period. The maximum price you would be willing to pay for the annuity is closest to
$32,000. $39,272. $40,000. $80,000
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
