If you put up $43,000 today in exchange for a 9.7 percent, 10-year annuity, what will the annual cash flow be?
An investment offers $9,900 per year for 13 years, with the first payment occurring 1 year from now. Assume the required return is 11 percent. Requirement
1: What is the value of the investment?
2: What would the value be if the payments occurred for 38 years?
3: What would the value be if the payments occurred for 73 years?
4: What would the value be if the payments occurred forever?