An individual who purchases an annuity is exchanging current dollars for future payments that will be made
Fantastic news! We've Found the answer you've been seeking!
Question:
An individual who purchases an annuity is exchanging current dollars for future payments that will be made monthly. Based on a monthly payment of $1,500, a life expectancy (length of the annuity) of 15 years, and a discount rate of 6.5%, how much would an individual expect to pay for the annuity?
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
Posted Date: