Question
Your cousin is thinking of buying an annuity that pays $4175 at the end of each year for 3 years. He could earn 3.85% on
Your cousin is thinking of buying an annuity that pays $4175 at the end of each year for 3 years. He could earn 3.85% on his money in other investments with equal risk. What is the most he should pay for this investment?
| a. | $12,305 | |
| b. | $11,619. | |
| c. | $11,047 | |
| d. | $12,525. | |
| e. | $11,170. |
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Fundamentals Of Corporate Finance
Authors: David W Blackwell, Robert Parrino, David S Kidwell
1st Edition
0471270563, 9780471270560
