An annuity is structured so that you will receive yearly payments with the first payment to be received 4 years from today. The annuity consists of 6 payments of $600 followed by 8 payments of $400 and then payments of $800 continuing forever. Find the amount that you would have to pay today to receive this annuity if it has a constant force of interest of 7%. Round your answer to 2 decimal places. 7251.74 x
An annuity is structured so that you will receive yearly payments with the first payment to be received 4 years from today. The annuity consists of 6 payments of $600 followed by 8 payments of $400 and then payments of $800 continuing forever. Find the amount that you would have to pay today to receive this annuity if it has a constant force of interest of 7%. Round your answer to 2 decimal places. 7251.74 x
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
Problem 1PS
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Transcribed Image Text:An annuity is structured so that you will receive yearly payments with the first payment to be received 4 years from today. The annuity consists of
6 payments of $600 followed by 8 payments of $400 and then payments of $800 continuing forever. Find the amount that you would have to pay
today to receive this annuity if it has a constant force of interest of 7%. Round your answer to 2 decimal places.
7251.74
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