Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to open a new restaurant, and your uncle offers to give you $120,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment?
A. 6.85%
B. 7.21%
C. 7.59%
D. 7.99%
E. 8.41%
Answer: E
You might also like to view...
According to the Shannon-Weaver communication model, the sender transmits a message through a ______.
A. communication channel B. message funnel C. transcript pathway D. neurolinguistic channel
A corporate strategy is defined as the major actions by which a business competes in a particular industry or market.
Answer the following statement true (T) or false (F)
How should you identify the title of a newspaper?
a. italic b. bold c. underline d. quotation marks
A sole proprietorship is a form of business ownership in which:
A. the company is considered a legal entity that is separate from its owners. B. a single owner actively manages the company. C. two or more people act as co-owners of the company. D. the owners of the business are offered limited liability and flexible tax treatment.