Answered

Discover new perspectives and gain insights with IDNLearn.com's diverse answers. Discover comprehensive answers to your questions from our community of experienced professionals.

Calculate price of a 25-year annuity making a $60 annual payment, discounted at 5%.

Sagot :

Answer:

the price of a 25-year annuity  is $845.64

Explanation:

The computation of the price is as follows:

The price of a 25-year annuity  is

= Annual payment × ((1 - (1 + discounted rate)^(number of years)) ÷ discounted rate)

 = $60 × ((1 - (1 + 5%)^(-25)) ÷ 5%)

= $845.64

hence, the price of a 25-year annuity  is $845.64

Therefore it could be determined by applying the above formula so that the price could come

Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. Thank you for choosing IDNLearn.com. We’re here to provide reliable answers, so please visit us again for more solutions.