Robert borrowed $28,372.63 from the bank, which needs to be paid with the amount of $404.21 at the beginning of every period compounded monthly, at an interest rate of 5.94%. What is the duration of this annuity? A 5.07 years B 4.98 years 7.16 years 6.22 years

Robert borrowed $28,372.63 from the bank, which needs to be paid with the amount of $404.21 at the beginning of every period compounded monthly, at an interest rate of 5.94%. What is the duration of this annuity? A 5.07 years B 4.98 years 7.16 years 6.22 years

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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9
Robert borrowed $28,372.63 from the bank, which needs to be paid with the amount of $404.21 at the beginning of every period
compounded monthly, at an interest rate of 5.94%. What is the duration of this annuity?
A 5.07 years
B 4.98 years
7.16 years
6.22 years

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