Question 1 would you pay pound3500 for an annuity which, Ask an Expert

Economics

Question: 1. Would you pay £3,500 for an annuity which guarantees to pay you £750 annually for the next 7 years if you can invest money elsewhere at 9%?

2. What would be a reasonable price to pay for a pension plan which guarantees to pay £200 a month for the next 2 years if you can earn 1.2% a month on your bank deposit account?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92290902

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