Answered: An annuity that pays $1100 at the end…

An annuity that pays $1100 at the end of each month for 23 years sells for $120,000. What was the quarterly compounded nominal rate of interest? 9.658% 10.055% 9.826% 9.349 % O9.928%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

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Please answer with explanation.

An annuity that pays $1100 at the end of each month for 23 years sells for
$120,000. What was the quarterly compounded nominal rate of interest?
9.658%
10.055%
9.826%
9.349%
9.928%

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