Suppose the present value of a 2 year ordinary annuity is $100 If the discount rate is 10 percent, what must be the annual cash flow A $65 45 b $82 64 c $57 62 d $53 78 e $79 22 ...

The correct option is Option C 5762 Explanation All the a ...

Suppose the present value of a 2-year ordinary annuity is $100. If the discount rate is 10

Question:

Suppose the present value of a 2-year ordinary is $100. If the is 10 percent, what must be the annual cash flow?A. $65.45b. $82.64c. $57.62d. $53.78e. $79.22
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...