Question: TNT Ltd . has just received a very large sum of money by selling off one of its subsidiaries. It immediately uses the funds to
TNT Ltd has just received a very large sum of money by selling off one of its subsidiaries. It immediately uses the funds to buy an annuity that will pay it back ten installments of $ for ten years starting one year from today. Money is worth per annum and the investment is compounded semiannually. How much did the annuity cost rounded to the nearest dollar?
Multiple Choice
None of the above
$
$
$
$
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