What is the value now of an annuity that paysf $6,000 at the end of each of the next 92 years assuming an interest rate is 9% per year? Question content area bottom Part 1 The PV is $enter your response here.
What is the value now of an annuity that paysf $6,000 at the end of each of the next 92 years assuming an interest rate is 9% per year? Question content area bottom Part 1 The PV is $enter your response here.
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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Question
What is the value now of an annuity that paysf
$6,000
at the end of each of the next
92
years assuming an interest rate is
9%
per year?Question content area bottom
Part 1
The PV is
$enter your response here.
(Round to the nearest dollar.)Expert Solution
Step 1: Define=present value of the annuity
Present value of annuity is equivalent value of annuities that would give same cash flow based on time and interest rate.
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