Anew investment opportunity for you is an annuity that pays $3,350 at the beginning of each year for 3 years. you could earn 5.5% on your money in other investments with equal risk. what is the most you should pay for the annuity?
select the correct answer.
a. $9,564.37
b. $9,593.57
c. $9,549.77
d. $9,578.97
e. $9,535.17

e. 9535,17

The annuity pays $3350 at the beginning of each year during 3 years, which means that if you decide to invest on it, you could receive $3350 now (at moment 0), $3350 at the beginning of the next year (let’s say at the beginning of moment 1) and $3350 in two years (at the beginning of period 2).

To be able to know how much does those payments (that are going to happened in the future) worth today, one should discount futures values to moment zero. One could easily think of these payments as if they were three bank checks that worth $3350 each, to be paid in the dates mentioned before: at moment zero (now), in a year (moment 1) and in two years (moment 2). If one decided to go to a bank and ask the bank to have money in advanced using these three checks, the bank would gives us the equivalent of the checks' present value, which is  

Step-by-step explanation:

answer set (b) 0.5, 3/4 80% is in order from least to greatest.  

step-by-step explanation:

in order to compare rational numbers to each other, it is much easier if they are in the same form.   typically, the best form in which to evaluate rational numbers is in decimals.   in order to convert a percent to a decimal, you would divide the given percentage by 100.   you can also accomplish the conversion by moving the decimal point over two places to the left.   for example, the decimal value of 80% is 80/100, or 0.8.   in order to convert a fraction to a decimal, you need to divide the numerator by the denominator.   for example, 3/4 is 0.75.   so, for choice (b) 0.5 3/4 (0.75), 80% (0.8) is the only choice in which the numbers are in order from least to greatest.