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a. What rate of return could Nicki eam on her money if she place it in annuity A with $8.500 payment per year and 16 years duration? (Round to two decimal places)

a. What rate of return could Nicki eam on her money if she place it in annuity A with $8.500 payment per year and 16 years duration? (Round to two decimal places)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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teaching. He talks to her about several annuities that she could buy that would guarantee her an annual fixed income. The annuities are as follows in the popup window mechanical engineering student, receives a call from an insurance agent, who believes that Nicki is an older woman ready to retir If Nicki could eam 11 percent on her money by placing it in a savings account, should she place it instead in any of the annuities? Which ones, if any? Why? a. What rate of return could Nicki eam on her money if she place it in annuity A with $8,500 payment per year and 16 years duration? % (Round to two decimal places.) Data table (Click on the following icon in order copy its contents into a spreadsheet.) ANNUITY A B C INITIAL PAYMENT INTO ANNUITY (AT 1 = 0) $60,000 $60,000 $40,000 Done GILD AMOUNT OF MONEY RECEIVE PE YEAR $8.500 $9,000 $6,000 DURATION OF ANNUITY (YEARS) 16 12 15
Transcribed Image Text:teaching. He talks to her about several annuities that she could buy that would guarantee her an annual fixed income. The annuities are as follows in the popup window mechanical engineering student, receives a call from an insurance agent, who believes that Nicki is an older woman ready to retir If Nicki could eam 11 percent on her money by placing it in a savings account, should she place it instead in any of the annuities? Which ones, if any? Why? a. What rate of return could Nicki eam on her money if she place it in annuity A with $8,500 payment per year and 16 years duration? % (Round to two decimal places.) Data table (Click on the following icon in order copy its contents into a spreadsheet.) ANNUITY A B C INITIAL PAYMENT INTO ANNUITY (AT 1 = 0) $60,000 $60,000 $40,000 Done GILD AMOUNT OF MONEY RECEIVE PE YEAR $8.500 $9,000 $6,000 DURATION OF ANNUITY (YEARS) 16 12 15
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