You are offered an annuity investment that will pay you $50,000 each year for the next 15 years, with the payments at the end of each year (first payment exactly one year from today at t=1). If you believe a discount rate of 4.5% is appropriate for the risk of this investment, what is the most you would be willing to pay for this investment today?

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The value of the annuity can be calculated using the formula for the present value ... View the full answer