Multiple Choice
A 15 payment annual annuity has its first payment in 9 years. If the payment amount is $1400 and the interest rate is 7%, what is the most you should be willing to pay today for this investment?
A) $5,825.11
B) $12,751.08
C) $6,416.67
D) $7,421.24
E) $6,935.74 PV0 =$1,400* {[1 - 1.07-15]/0.07}/1.078
Correct Answer:
Verified
Correct Answer:
Verified
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