What should you be willing to pay today for the annuity

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Reference no: EM131306423

An insurance company offers you an annuity of $36,000 per year for the next 15 years. They claim your return on the annuity is 13%. What should you be willing to pay today for the annuity?

2) A financial instrument that agrees to pay an equal amount of money per period into the indefinite future (i.e. forever) is

a)perpetuity.

b)annuity.

c)annuity due.

d)sinking fund.

3)You invest $100 every monthly. The annual rate is 3% and you will invest for 20 years. How much money will you have in 20 year?

Reference no: EM131306423

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