Return on the annuity, Finance Basics

An insurance company offers you and end of year annuity of $48,000 per year for the next 20 years. They claim your return on the annuity is 9%. What is the most you would be willing to pay today for this annuity? 


Amount offered every year by


insurance company


 mce_markernbsp;                     48,000.00


Period (Years)




Interest rate claimed




Present Value of the annuity


of 20 years




Note: Assumed amount received at the end of the year.


Posted Date: 7/23/2012 2:08:45 AM | Location : United States

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