Multiple Choice
You have a chance to buy an annuity that pays $5,000 at the beginning of each year for 5 years.You could earn 4.5% on your money in other investments with equal risk.What is the most you should pay for the annuity?
A) $20,701
B) $21,791
C) $22,938
D) $24,085
E) $25,289
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Suppose Randy Jones plans to invest $1,000.He
Q4: The payment made each period on an
Q13: If a bank compounds savings accounts quarterly,
Q65: Charter Bank pays a 4.50% nominal rate
Q67: Suppose Community Bank offers to lend you
Q68: Suppose a State of California bond will
Q73: Your child's orthodontist offers you two alternative
Q74: Suppose Sally Smith plans to invest $1,000.She
Q89: What is the PV of an ordinary
Q105: Time lines can be constructed for annuities