You are considering an annuity investment which will pay $10,000 a year for 25 years, starting 1 year from today. What is the present value of this investment if you wish to earn a 7.5 percent rate of return? 1) $94,960.00 x 2) $95,217.81 3) $105,734.73 $111,469.46
You are considering an annuity investment which will pay $10,000 a year for 25 years, starting 1 year from today. What is the present value of this investment if you wish to earn a 7.5 percent rate of return? 1) $94,960.00 x 2) $95,217.81 3) $105,734.73 $111,469.46
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 5SE: What is an annuity?
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Question
![You are considering an annuity investment which will pay $10,000 a year for 25 years, starting 1 year from
today. What is the present value of this investment if you wish to earn a 7.5 percent rate of return?
1) $94,960.00
x
2) $95,217.81
3) $105,734.73
$111,469.46](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F983e7a8d-ffdd-4121-83fb-2163ddf5767b%2F71b22a1d-f25f-4be3-838b-7c11759adbb5%2Fmhs7bi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You are considering an annuity investment which will pay $10,000 a year for 25 years, starting 1 year from
today. What is the present value of this investment if you wish to earn a 7.5 percent rate of return?
1) $94,960.00
x
2) $95,217.81
3) $105,734.73
$111,469.46
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