You will live at least 35 more years. ignoring taxes should, Ask an Expert

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Your cost of capital is 11 percent, and here is the offer:

You put in $900 per year for the first 11 years (years 1 through 11) and our company will pay you $2500 for the following 22 years (years 12 through 33). All payments will be made at the end of the year.

You will live at least 35 more years. Ignoring taxes, should you buy the annuity? Base your response entirely on financial grounds.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9205359

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