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You want to retire in 30 years, and you want to have an annuity of $45,000 a year for 25 years after retirement. You want to receive the annuity payments at the end of the year basis during your retirement period. Using an interest rate of 7.5% for the savings period and 3.5% for the retirement period, how much you must invest today in order to have this retirement annuity? $125,347.90 $148,811.28 O $112,129.89 O $100,881.84 O$84,714.10

You want to retire in 30 years, and you want to have an annuity of $45,000 a year for 25 years after retirement. You want to receive the annuity payments at the end of the year basis during your retirement period. Using an interest rate of 7.5% for the savings period and 3.5% for the retirement period, how much you must invest today in order to have this retirement annuity? $125,347.90 $148,811.28 O $112,129.89 O $100,881.84 O$84,714.10

Essentials Of Investments
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
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You want to retire in 30 years, and you want to have an annuity of $45,000 a year for 25 years after retirement. You want to receive the annuity payments at the end of the year basis during your retirement period. Using an interest rate of 7.5% for the savings period and 3.5% for the retirement period, how much you must invest today in order to have this retirement annuity? O$125,347.90 $148,811.28 O $112,129.89 O $100,881.84 $84,714.10
Transcribed Image Text:You want to retire in 30 years, and you want to have an annuity of $45,000 a year for 25 years after retirement. You want to receive the annuity payments at the end of the year basis during your retirement period. Using an interest rate of 7.5% for the savings period and 3.5% for the retirement period, how much you must invest today in order to have this retirement annuity? O$125,347.90 $148,811.28 O $112,129.89 O $100,881.84 $84,714.10
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