An annuity offers a payment of $5000 at the beginning of every three months for twenty years. Interest is compounded monthly at a nominal rate of 8.8%, and the first payment is deferred for 3 years. Determine the amount that you would pay for this annuity today.
An annuity offers a payment of $5000 at the beginning of every three months for twenty years. Interest is compounded monthly at a nominal rate of 8.8%, and the first payment is deferred for 3 years. Determine the amount that you would pay for this annuity today.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 6FPE
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![An annuity offers a payment of $5000 at the beginning of every three months for
twenty years. Interest is compounded monthly at a nominal rate of 8.8%, and the
first payment is deferred for 3 years. Determine the amount that you would pay for
this annuity today.
O a. $ 145 573.01
O b. $ 146 563.01
O c. $ 146 939.01
O d. $ 146 585.01
O e. $ 143 982.01](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbdda2199-1738-4181-990b-807364275b68%2F2b03fdeb-c5a1-4064-8859-196258f1ab17%2Fhbilhh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An annuity offers a payment of $5000 at the beginning of every three months for
twenty years. Interest is compounded monthly at a nominal rate of 8.8%, and the
first payment is deferred for 3 years. Determine the amount that you would pay for
this annuity today.
O a. $ 145 573.01
O b. $ 146 563.01
O c. $ 146 939.01
O d. $ 146 585.01
O e. $ 143 982.01
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