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 wonât have to worry about the quality and deadlinesOrder 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