Multiple Choice
Assume that you own an annuity that will pay you $15,000 per year for 12 years,with the first payment being made today.You need money today to start a new business,and your uncle offers to give you $128,000 for the annuity.If you sell it,what rate of return would your uncle earn on his investment?
A) 8.36%
B) 6.77%
C) 5.73%
D) 6.91%
E) 5.32%
Correct Answer:
Verified
Correct Answer:
Verified
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