Bob purchases an annuity that will pay him $10,000 a year for the next 15 years starting a year from now.  Assuming a 5% annual interest rate, what is the value of this annuity?  Choose the closes. a) $150,000 b) $103,797 c) $124,622 d) $77,217

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A: Excel Spreadsheet:

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A: Here,

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.