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Robben Company is considering investing an annuity contract that will return 28,000 annually at the end...

Robben Company is considering investing an annuity contract that will return 28,000 annually at the end of each year for 18 years.

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What amount should Robben Company pay for this investment if it earns an 8% return?

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Answer #1

Solution $28,000.00 Annual return 18 years Time 8% p.a rate of return Present Value of Annuity Annuity x PV factor of annuity

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