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uT0 Ur Annuities raded Assignment | Back to Assignment Due Sunday 11.04.18 at 11:00 PM Attempts: Average: /3 2. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annulties has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $1,000 at the end of each year O An annuity that pays $500 at the beginning of every six months You bought an annuity selling at $6,054.15 today that promises to make equal payments at the beginning of each year for the next 12 years (N). If the annuity's appropriate interest rate (i) re the value of the annual annuity payment (PMT) is ans at 9.50% dring this time, the 1,147.92 989.59 You just won the lottery Congratulations! The ja$791.67 ,000, paid in 12 equal annual payments. The first payment on the lottery jackpot will be made todaym present value terms, you really won assuming annual interest rate of 9.50%. 2004 2016 Aplig, All gtreved of Use Privacy Noticeecority Notice cessbuty Copyright NoticesTer