5. Ms. Saver expects to receive a deferred annuity of $20,000 a year for 10 years that is deferred 5 years. What is the present value of the annuity if money is worth 8%? a. $91,335.00 b. $171,190.00 c. $85,030.00 d. $36,988.00

5. Ms. Saver expects to receive a deferred annuity of $20,000 a year for 10 years that is deferred 5 years. What is the present value of the annuity if money is worth 8%? a. $91,335.00 b. $171,190.00 c. $85,030.00 d. $36,988.00

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

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Question

5. Ms. Saver expects to receive a deferred annuity of $20,000 a year for 10 years that is deferred 5 years. What is the present value of the annuity if money is worth 8%?

a. $91,335.00

b. $171,190.00

c. $85,030.00

d. $36,988.00

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