An insurance company offers you and end of year annuity of, Ask an Expert

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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?

a	Amount offered every year by
	insurance company	mce_markernbsp; 48,000.00
b	Period (Years)	20
c	Interest rate claimed	9%
d	Present Value of the annuity
	of 20 years	$438,170.19

	Note: Assumed amount received at the end of the year.

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Category:- Basic Finance
Reference No.:- M9504849

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