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Question 8 After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 20 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the beginning of every year. Assuming a rate of return of 3%, how much do you need today to buy the annuity contract? $1,413,394 $2,018,845 O $1,532,380 $1,487,747 Question 9 $2,012 You expect to receive $300, $500, $400, $500, $100, $300, and $400 at the end of each year over the next 7 years. If an annual interest rate is 3 percent, what is the present value of this uneven cash flow stream? $2,236 10 pts $2,083 $1,864 10 pts Question 8 After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 20 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the beginning of every year. Assuming a rate of return of 3%, how much do you need today to buy the annuity contract? $1,413,394 $2,018,845 O $1,532,380 $1,487,747 Question 9 $2,012 You expect to receive $300, $500, $400, $500, $100, $300, and $400 at the end of each year over the next 7 years. If an annual interest rate is 3 percent, what is the present value of this uneven cash flow stream? $2,236 10 pts $2,083 $1,864 10 pts
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Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
Posted Date:
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