Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuity
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Question:
Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuity payment made on the date of purchase. What is the value of the annuity on the purchase date given a discount rate of 7 percent?
a. $66,916.21
b. $52,970.07
c. $56,677.98
d. $54,282.98
e. $56,191.91
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
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