Question


You are an insurance company and have sold an annuity to a customer. The annuity pays 240 monthly payments (the same each month) starting 12 months from today. The monthly paymenst are $500 per month. If your firm earns 5.00% APR (compounded monthly), on its investments, how much does it have to invest today to just cover the cost of the annuity? O $75,763 $77,278 O$72,375 $72,075 O$73,517
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Value after 1year 2 Here, 4 5 A 6 B Number of years 7| C|Number of compoundingsperper annum 8 A+C Interest rate per period (r

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