An annuity pays equal payments each quarter for eight years. At the end of the eight years,
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An annuity pays equal payments each quarter for eight years. At the end of the eight years, the annuity holder receives a lump sum payment of $10,000. If the annuity costs $20,000 today, how much does the quarterly payment have to be if the discount rate is 4.5% APR? Assume quarterly compounding.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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