The Good Life Insurance Co. wants to sell you an annuity which will pay you $740
ID: 2705699 • Letter: T
Question
The Good Life Insurance Co. wants to sell you an annuity which will pay you $740 per quarter for 20 years. You want to earn a minimum annual rate of return of 5.9 percent. What is the most you are willing to pay as a lump sum today to buy this annuity?
The Good Life Insurance Co. wants to sell you an annuity which will pay you $740 per quarter for 20 years. You want to earn a minimum annual rate of return of 5.9 percent. What is the most you are willing to pay as a lump sum today to buy this annuity?
$31,972.27 $32,457.76 $34,620.05 $34,228.31 $30,102.01
Explanation / Answer
$34,620.05