Multiple Choice
just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years.You could earn 5% on your money in other investments with equal risk.What is the most you should pay for the annuity?
A) $50,753
B) $53,424
C) $56,236
D) $59,195
E) $62,311
Correct Answer:
Verified
Correct Answer:
Verified
Q32: Which of the following statements is CORRECT,assuming
Q84: much would $5,000 due in 25 years
Q86: present value of a future sum decreases
Q88: plan to borrow $35,000 at a 7.5%
Q90: want to buy a new sports car
Q91: year Tempe Corporation's sales were $525 million.If
Q92: want to buy a new ski boat
Q93: child's orthodontist offers you two alternative payment
Q94: "growing annuity" is any cash flow stream
Q100: Suppose you inherited $275,000 and invested it