Determining annuity evaluation

Reference no: EM1329989

Your cost of capital is 11 percent, and here is the offer:

You put in $900 per year for the first 11 years (years 1 through 11) and our company will pay you $2500 for the following 22 years (years 12 through 33). All payments will be made at the end of the year.

You will live at least 35 more years. Ignoring taxes, should you buy the annuity? Base your response entirely on financial grounds.

Reference no: EM1329989

Questions Cloud

What is the sustainability of kenya''s market : What is the sustainability of Kenya's market

Explain how might a high school students experience : Explain how might a high school student's experience with inflation differ from an employed urban adult.

Create program that displays a student id number : Write a program that shows a student ID number and asks the user to enter a numeric test score for the student. Create a ScoreException class.

Balancing the societys rights : Would you please concisely discuss what ideas from the Declaration of Independence you see as the most meaningful basis of our law today.

Determining annuity evaluation : You will live at least 35 more years. Ignoring taxes, should you purchase the annuity? Base your response entirely on financial grounds.

Product development : Describe a plan that states specifically what needs to be done and when each item will get done. This plan should include any "product development" efforts that still need to occur and should include your schedule for the creation of your promotional..

Explain important information about asp : Explain Important information about ASP and prepare a document outlining how ASP can be used to put in an online shopping section with shopping cart

Program can be used with a video rental business : Extend above with a Rental class. This class must store a Movie that is rented, an integer representing the ID of the customer who rented the movie, and an integer indicating how many days late the movie is.

Elucidate which project should be accepted : Elucidate which project should be accepted if the required rate of return for the projects

User Account

All Pages