Question: Please answer ALL questions and check if the first question is correct. Thank you You have the opportunity to invest in several annuities. Which of
Please answer ALL questions and check if the first question is correct. Thank you
You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the beginning of every six months An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year An annuity that pays $1,000 at the end of each year You bought an annuity selling at $13,209.46 today that promises to make equal payments at the beginning of each year for the next eight years (N). If the annuity's appropriate interest rate (I) remains at 11.00% during this time, then the value of the annual annuity payment (PMT) is $3,353.13 $2,890.63 $7,265.20 You just won the lottery. Congratulations! The jackpot $2,312.50 paid in eight equal annual payments. The first You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won assuming annual interest rate of 11.00%. $24,990,858.66 $57,592,377.675 $22,514,287.08 $51,885,024.932
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