1.)An annuity pays $7800 each year. It cost $58200 today. The interest rate is 4 percent....

1.)An annuity pays $7800 each year. It cost $58200 today. The interest rate is 4 percent. How many years is the annuity?

2.)An annuity pays $100 each year. It is worth $507.57 today. The annual interest rate is 5 percent. How many years is the annuity?

3.)

Corp has a new manager. The compensation agreement calls for a single payment of $25,200,000 be paid after the first 9 years of work. Corp wants to invest an equal amount each year to pay for this future obligation. The interest rate on investment is 8 %. How much must be invested each year?

$2,221,566.51

$1,949,396.38

$2,018,008.67

$1,954,643.20

$2,016,000.00

Expert Solution

jeff jeffy answered 1 year ago

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