Multiple Choice
You are comparing two annuities with equal present values.The applicable discount rate is 6.5 percent.One annuity will pay $2,000 annually,starting today,for 20 years.The second annuity will pay annually,starting one year from today,for 20 years.What is the annual payment for the second annuity?
A) $2,225
B) $2,075
C) $2,000
D) $2,130
E) $2,405
Correct Answer:
Verified
Correct Answer:
Verified
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