Annuities, Corporate Finance

You are considering the purchase of a deferred annuity that will pay $10,000 a year at the end of each year for 20 years, to you or a desgnated survivor. (sure thing) Payments will begin when you turn 65, your current age is 55. If you feel 7% annual interest rate is a fair return, what is the maximum amount you should pay for the annuity today?
Posted Date: 11/8/2012 2:36:01 PM | Location : United States







Related Discussions:- Annuities, Assignment Help, Ask Question on Annuities, Get Answer, Expert's Help, Annuities Discussions

Write discussion on Annuities
Your posts are moderated
Related Questions
Question : (a) Electronic banking can be defined as "the automated delivery of new and traditional banking products and services directly to customers through electronic, int

What is an agent? What are the responsibilities of an agent? Ans: An agent is someone who has the implied or actual authority to act on behalf of another.  The owners whom the

Problem: (a) What are the main functions of the Bank of Mauritius? Give short comments on each function. (b) The Repo rate is an instrument of monetary policy for the Bank

What will happen to the required rate of return (SML) if the following events occur: a)      Inflation expectations increase b)      Investors become more risk averse c)

Suppose you take out a loan of $10,000, repayable by five equal annual instalments. The interest rate is 10% per year. (a) How much do you need to repay per year to the nearest ce

Course assessment: Company directors often believe that the stock market fails "correctly" to value the firms they manage, while investors are often alarmed by the volatility i

X has 10 shareholders, each of whom owns 100 of its 1,000 outstanding shares of common stock (worth $100 per share).  No other stock is outstanding.  Determine whether the securiti

you buy a car for ths 10000000 to be repaid in 3 years, with annua interest of 12%. preapare a loan amortization table

I''m studying Accounting course, but English is my second lauguage, it''s vey hard for me to do this, and time is runing out. would you help me with an assignment about the Trible

Do mergers encourage the formation of new banks? A: Yes. The rise in the number of new banks in the second half of the 1990s coincides with a surge in merger activity in the