(Answered) You are considering an annuity which costs 74100 today the

Finance

You are considering an annuity which costs $74,100 today. The annuity pays $6,000 a year. The rate of return is 5 percent. What is the length of the annuity time period? (Do not round intermediate calculations.)

a. 19.70 years

b.2.75 years

c.9.85 years

d.12.35 years

Your parents are giving you $310 a month for 5 years while you are in college. At a 8 percent discount rate, what are these payments worth to you when you first start college?

a.15,659.71

b.15,288.71

c.14,965.71

d.$14,610.00

e.$18,600.00

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