how much should you pay for any annuity

label Business
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schedule 1 Day
account_balance_wallet $5

Approximately how much should you pay for any annuity that promises to pay you $250 every year for 10 years if you require a 5% return on the investment?

A) $407 B) $250 C) $3,145 D) $1,930 E) $154 

Jul 7th, 2015

Thank you for the opportunity to help you with your question!

250[1.05-1]/0.05

=250/0.05[1.05]

250

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Jul 7th, 2015

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