Mathematics, 15.02.2021 06:50 lizzyhearts
Ile | E:/SEMESTER%2002/BASIC%20FINANCE/PD F/Time%20value%20of%20money%20Part% 2011.pdf
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3. Mr. Emerson wishes to purchase an annuity contract that
will pay him, Rs.7000 a year for the rest of his life. The Sri
Lanka Insurance Corporation figures that his life expectancy is
20 years. The company imputes a compound annual interest
rate of 6% in its annuity contracts.
How much will Emerson has to pay for the annuity?
b. How much would he have to pay if the interest were 8%?
a.
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Answers: 2
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If you invest 1,500 today in a bank that gives you a 5 percent annual interest rate, which of these items can you buy in two years? a. electronics worth $1,650 b.fitness equipment worth $1,700 c.a holiday package worth $2,000
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Ile | E:/SEMESTER%2002/BASIC%20FINANCE/PD F/Time%20value%20of%20money%20Part% 2011.pdf
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