I am also considering a purchase of an annuity on January 1, Year 1, that pays $5,000

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I am also considering a purchase of an annuity on January 1, Year 1, that pays $5,000 at the beginning of every month, but the first payment will not start until January 1, Year 3, and the last payment is received on December 1, Year 9.

Can you tell me what I should pay for this annuity if the interest rate quoted for this investment is 6%?

Related Book For answer-question

Modern Advanced Accounting In Canada

ISBN: 9781259066481

7th Edition

Authors: Hilton Murray, Herauf Darrell

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Posted Date: Mar 10, 2024 11:21 PM

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I am also considering a purchase of an annuity on January 1, Year 1, that pays $5,000

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To determine the present value of the annuity we need to discount the future cash flows to their pre... View the full answer

Modern Advanced Accounting In Canada

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