An insurance agent is trying to sell you an immediate retirement annuity that offers $16,000 per year at the end of each of the next 30 years. The price of the investment proposed by the agent is $350,000. If you have the opportunity to earn 11% compounded annually on risky investments comparable to the retirement annuity offered, determine the most you would be willing to pay for the project. Would you buy it?

Answer rating: 100% (QA)

To determine the most you would be willing to pay for the immediate retirement annuity we can treat ... View the full answer