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 open a new restaurant, and your uncle offers to give you $120, 000 for the annuity.If you sell it, what rate of return would your uncle earn on his investment?
A) 6.85%
B) 7.21%
C) 7.59%
D) 7.99%
E) 8.41%
Correct Answer:
Verified
Correct Answer:
Verified
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