Business, 25.02.2020 03:23 amakayla57

You are offered an annuity that will pay you $200,000 per year, at the end of the year, for 25 years. The first payment will arrive one year from now. The last payment will arrive 25 years from now. Suppose your annual discount rate is i=16.25%. How much are you willing to pay for this annuity? (hint: this is the same as the present value of an annuity.)

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You are offered an annuity that will pay you $200,000 per year, at the end of the year, for 25 years...

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