Annuity vs. Lump Sum


At what interest rate (as an EAR) would you be indifferent
between the following two choices: 1) receiving $10,000 per year,
starting 1 year from today, for a total of 2 payments
(the last payment occurs 2 years from today in that
case)… OR, 2) receiving $22,055
exactly 3 years from today? Answer:

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Margin of error for correct responses: +/- .03%.

Rounding and Formatting instructions: Do not enter a %
sign in your response. Do not round any
intermediate work, but round your *final* response to 2 decimal
places (Example: if your answer is 12.34567%, you should enter

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"