Question: If you require a 1 2 % annual return on your investments, would you prefer $ 2 0 , 0 0 0 six years from

If you require a 12% annual return on your investments, would you prefer $20,000 six years from today or an annuity paying $1,800 at the beginning of each year for 13 years.
Question 20Answer
a.
The annuity paying $1,800 at the beginning of each year for 13 years.
b.
The annuity paying $1,600 at the beginning of each year for 15 years.
c.
The $20,000 six years from today
d.
The $20,000 five years from today

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