Question
Your friend offers to pay you an annuity of $8,500 at the end of each year for 3 years in return for cash today. You
Your friend offers to pay you an annuity of $8,500 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
