Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years.
Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%;
- What should be the present value of this annuity?
b.If you are given the first payment immediately starting today, what should be the worth of this annuity?
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Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
