Question
In: Finance
Abigail wishes to purchase an annuity which will pay her $2250 at the end of each...
Abigail wishes to purchase an annuity which will pay her $2250 at the end of each month for 10 years. The rate of interest on the annuity is 6% compounded monthly. Find the present value of this cash flow.
Solutions
Expert Solution
PV =
r = 6%/12 = 0.5% (monthly), n = 10 * 12 = 120 months
PV = 2250 * 90.07345
PV = $198,161.60
jeff jeffy answered 2 years agoRelated Solutions
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