Your friend offers to pay you an annuity of $2,800 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
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Your friend offers to pay you an
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- Your friend offers to pay you an annuity of $2,500 at the end of each year for 10 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Please show your work in excelYou have a chance to buy an annuity that pays $2,500 at the end of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?Your friend offers to pay you an annuity of $9,300 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Select the correct answer. a. $25,082.78 b. $25,058.78 c. $25,090.78 d. $25,066.78 e. $25,074.78
- You have a chance to buy an annuity that pays $2,450 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?Your insurance agent is trying to sell you an annuity that costs $40,000 today. By buying this annuity, your agent promises that you will receive payments of $220 a month for the next 21 years. What is the rate of return on this investment?Assume that you just inherited an annuity that Will pay you 10,000 per year, with the first payment being made today. A friend mother offers you 60,000 for the annuity. If you sell it, what rate of return would your mother's friend earn on his investment? If you think a fair return would be 6% how much should you ask for the annuity
- Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%. What should be the present value of this annuity? If you are given the first payment immediately starting today, what should be the worth of this annuity? Which payment mode will you accept? What will be basis of your decision under time value of money concept?You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?A new investment opportunity for you is an annuity that pays $800 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
- Your rich uncle has offered you two living trust payouts for the rest of yourlife. The positive cash flows of each trust are shown below. If your personalMARR is 10% per year, which trust should you select? Note: At 10% per year interest, infinity occurs when N = 80 years.Assume that you just inherited an annuity that will pay you $10,000 per year for 10 years, with the first payment being made today. A friend of your mother offers to give you $60,000 for the annuity. If you sell it, what rate of return would your mother’s friend earn on his investment? If you think a “fair” return would be 6%, how much should you ask for the annuity? What keys do I need to enter in a financial calculator to get the answers of (13.70%, $78,016.92)/ only show me the keys to enter in a financial calculaotr. not excel and not algebraA new investment opportunity for you is an annuity that pays $550 at the END of each year for 3 years. You could earn a rate of return of 5.5% per year on your money in other, similar investments. What is the most you should pay for the annuity? Express your answer in dollars and cents.