Top Posters
Since Sunday
18
s
5
C
4
j
4
s
4
W
3
a
3
H
3
s
3
a
3
o
3
K
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
johnpaech johnpaech
wrote...
Go to Answer
Posts: 1098
Rep: 7 0
5 years ago
After your grandmother retired, she purchased an annuity contract for $250,000 that will pay her $25,000 at the end of every year until she dies.  The appropriate interest rate for this annuity is 8%.  The number of years that your grandmother must live in order to get more value out of the annuity than what she paid for it is closest to:
A) 21
B) 16
C) 8
D) 10
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 209 times
1 Reply
Replies
Answer verified by a subject expert
deusmarotodeusmaroto
wrote...
#1
Posts: 429
Rep: 6 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
A
Explanation:  A) PV = 250,000
FV = 0
I = 8
PMT = - 25000
Compute N = 21
1

Related Topics

johnpaech Author
wrote...

5 years ago
Brilliant ツ
jmendoza
wrote...

Yesterday
You make an excellent tutor!
SUmmerPeople
wrote...

2 hours ago
Correct Slight Smile TY
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  104 People Browsing
 294 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 230
  
 109
  
 51
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 6
Previous poll results: Which of the following is the best resource to supplement your studies: