April Stigum will receive a 20-year annuity of $20,000 annually, beginning six years from today in other words, the first payment of twenty payments will be made at the end of year 6. Assuming a required rate of retum of 5%, calculate the present value today of her annuity (Round to 2 decimal)

April Stigum will receive a 20-year annuity of $20,000 annually, beginning six years from today in other words, the first payment of twenty payments will be made at the end of year 6. Assuming a required rate of retum of 5%, calculate the present value today of her annuity (Round to 2 decimal)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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