If interest rate is 10% per year, which one of the following annuities give maximum benefit and hence preferable? Annuity of $ 100 for 10 years Annuity of $ 50 for 15 years Annuity of $ 65 for 20 years Annuity of $ 180 for 5 years

If interest rate is 10% per year, which one of the following annuities give maximum benefit and hence preferable? Annuity of $ 100 for 10 years Annuity of $ 50 for 15 years Annuity of $ 65 for 20 years Annuity of $ 180 for 5 years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If interest rate is 10% per year, which one of the following annuities give maximum benefit and hence preferable?

Annuity of $ 100 for 10 years

Annuity of $ 50 for 15 years

Annuity of $ 65 for 20 years

Annuity of $ 180 for 5 years

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