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borteleto borteleto
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5 years ago
You own an annuity due contract that will pay you $3,000 per year for 12 years. You need money to pay back a loan in 5 years, and you are afraid if you get the annuity payments annually you will spend the money and not be able to pay back your loan. You decide to sell your annuity for a lump sum of cash to be paid to you five years from today. If the interest rate is 8%, what is the equivalent value of your 12-year annuity if paid in one lump sum five years from today?
A) $22,008
B) $18,000
C) $35,876
D) $38,880
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
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guzmanguzman
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5 years ago
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borteleto Author
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5 years ago
Thanks
TheMoffattMan
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Yesterday
This helped my grade so much Perfect
Transonic
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2 hours ago
Brilliant ツ
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