You own an annuity due contract that will pay you $3,000 per year for 12 years
You need money to
pay back a loan in 5 years, and you are afraid if you get the annuity payments annually you will
spend the money and not be able to pay back your loan. You decide to sell your annuity for a lump
sum of cash to be paid to you five years from today. If the interest rate is 8%, what is the equivalent
value of your 12-year annuity if paid in one lump sum five years from today?
A) $22,008 B) $18,000 C) $38,880 D) $35,876
D
You might also like to view...
What opportunities do pay ranges provide managers?
What will be an ideal response?
In the context of the specific environment of organizations, which of the following is a similarity between the public communications approach and a product boycott?
A. Both are more aggressive than media advocacy. B. Both typically involve framing a group's concerns as public issues. C. Both are advocacy group tactics. D. Both create controversies that are likely to receive extensive news coverage.
Sarbanes-Oxley provides protection for corporate whistleblowers who report securities violations
a. True b. False Indicate whether the statement is true or false
To maintain status as a corporation, the corporation must:
A. reapply for a charter annually. B. submit its bylaws to the secretary of the state of incorporation every year. C. hold annual meetings of both the shareholders and the board of directors. D. properly declare annual dividends.