1. What is the FV difference between an annuity that pays you $1000 each year for 5 years at the beginning of the period, versus an annuity that pays you $1000 each year for 5 years at the end of the period, assuming a 7% investment rate?

2. Visa wanted to pay famous person promotion fee of $3 million each year over 10 years. He wants the fee all up front. How much should he negotiate for if his opportunity cost is 12%?

Answer rating: 100% (QA)

Future Value Difference between Annuities Scenario 1 Annuity payments at the beginning of the period ... View the full answer