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johnpaech johnpaech
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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:
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deusmarotodeusmaroto
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5 years ago
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More solutions for this book are available here
A
Explanation:  A) PV = 250,000
FV = 0
I = 8
PMT = - 25000
Compute N = 21
1

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johnpaech Author
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5 years ago
this is exactly what I needed
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You make an excellent tutor!
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This helped my grade so much Perfect
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