Anurag receives an annuity that pays $200 at the end of each month. He wishes to replace it with an annuity that has the same term and has only one payment each year, and that payment should be at the beginning of the year. How much should the payments be if the exchange is based on a nominal discount rate of 8% payable quarterly?

Answer rating: 100% (QA)

To calculate the equivalent annual payment for the annuity we need to consider the time value of mon... View the full answer