If you want to be paid from a 14 year ordinary annuity with a guaranteed rate of 2.208% compounded annually, how much should you pay for one of these annuities if you want to receive annual payments of $9,000.00 over the 14 year period?

If you want to be paid from a 14 year ordinary annuity with a guaranteed rate of 2.208% compounded annually, how much should you pay for one of these annuities if you want to receive annual payments of $9,000.00 over the 14 year period?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Question

if you want to be paid from a 14 year ordinary annuity with a guaranteed
rate of 2.208% compounded annually, how much should you pay for one of these
annuities if you want to receive annual payments of $9,000.00 over the 14 year
period?
(Note: Your answer should have a dollar sign and be accurate to two decimal
places)

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