What would you pay for an investment that pays you $38000 at the beginning of each year for the next ten years? Assume that the relevant interest rate for this type of investment is 11%.
Present value of annuity due=(1+rate)*Annuity[1-(1+interest rate)^-time period]/rate
=1.11*38000[1-(1.11)^-10]/0.11
=38000*6.53704753
which is equal to
=$248407.81(Approx)
What would you pay for an investment that pays you $38000 at the beginning of each...
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11-16 I need help quick
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