# Question: Mark Ventura has just purchased an annuity to begin payment

Mark Ventura has just purchased an annuity to begin payment at the end of 2016 (that is the date of the first payment). Assume it is now the beginning of the year 2014. The annuity is for $8,000 per year and is designed to last 10 years. If the interest rate for this problem calculation is 13 percent, what is the most he should have paid for the annuity?

**View Solution:**## Answer to relevant Questions

If you borrow $9,441 and are required to pay back the loan in five equal annual installments of $2,750, what is the interest rate associated with the loan?Your younger sister, Linda, will start college in five years. She has just informed your parents that she wants to go to Hampton University, which will cost $17,000 per year for four years (cost assumed to come at the end of ...How does an assetâ€™s ADR (asset depreciation range) relate to its MACRS category?The Short-Line Railroad is considering a $140,000 investment in either of two companies. The cash flows are as follows:a. Using the payback method, what will the decision be?b. Explain why the answer in part a can ...The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $60,000. The annual cash flows have the following ...Post your question