An insurance company offers you and end of year annuity of $48,000 per year for the next 20 years. They claim your return on the annuity is 9%. What is the most you would be willing to pay today for this annuity?
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a
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Amount offered every year by
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insurance company
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mce_markernbsp; 48,000.00
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b
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Period (Years)
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20
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c
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Interest rate claimed
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9%
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d
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Present Value of the annuity
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of 20 years
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$438,170.19
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Note: Assumed amount received at the end of the year.
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