You are comparing two annuities with equal present values. The applicable discount rate is 6.5 percent. An annuity will pay $2,000 per year, starting today, for 20 years. The second annuity will be paid annually, starting one year from today, for 20 years. 

Required:

What is the annual payment of the second annuity?

Answer rating: 100% (QA)

Since both annuities have the same present value and are evaluated at the same discount rate we can ... View the full answer