Multiple Choice
Sam was injured in an accident,and the insurance company has offered him the choice of $45,000 per year for 15 years,with the first payment being made today,or a lump sum.If a fair return is 7.5%,how large must the lump sum be to leave him as well off financially as with the annuity?
A) $328,799.18
B) $333,069.30
C) $478,253.35
D) $324,529.06
E) $427,011.92
Correct Answer:
Verified
Correct Answer:
Verified
Q78: Your uncle will sell you his bicycle
Q79: Your company has just taken out a
Q80: What is the present value of the
Q81: After graduation,you plan to work for Dynamo
Q82: Suppose the U.S.Treasury offers to sell you
Q84: What is the present value of the
Q85: You plan to invest in bonds that
Q86: Suppose you have $2,000 and plan to
Q87: Suppose you inherited $575,000 and invested it
Q88: Suppose you borrowed $6,000 at a rate