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 $92,000 for the annuity.If you sell it,what rate of return would your uncle earn on his investment?
A) 18.11%
B) 15.33%
C) 14.24%
D) 15.48%
E) 11.61%
Correct Answer:
Verified
Correct Answer:
Verified
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