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What lump sum settlement have same present value

You are at retirement age and one of your benefit options is to accept an annual annuity of $7,500 for 15 years. What lump sum settlement, if paid today, would have the same present value as the $7,500 annual annuity? Assume a 10 percent discount rate.

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What lump sum settlement have same present value

Reference No:- TGS0678857

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Prepare a brochure that describes the services you offer

Q : Explain the average cost method is applied

Q : Relevance of the accounting standard-setting process

Q : Howt to corporate charter authorized

Q : What lump sum settlement have same present value

Q : Calculate the cash flows from operating activities

Q : Which best tracks the wear and tear on the van

Q : Quality of financial statements

Q : Find present value of interest discounted at ten percent

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What lump sum settlement have same present value

Reference No:- TGS0678857

Recent Questions Asked Finance Basics

Q : Prepare a brochure that describes the services you offer

Q : Explain the average cost method is applied

Q : Relevance of the accounting standard-setting process

Q : Howt to corporate charter authorized

Q : What lump sum settlement have same present value

Q : Calculate the cash flows from operating activities

Q : Which best tracks the wear and tear on the van

Q : Quality of financial statements

Q : Find present value of interest discounted at ten percent

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