How much will the fair market value of the contract be today

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Question 1) You are 35 today. You are looking into buying a retirement annuity contract which will pay you a constant $10,000 per year, at the start of each year, for 15 years when you retire at 67. If the insurer marketing this contract has a cost of capital of 12%, how much will the fair market value of the contract be today?

Question 2) A company wants to have its sales double in 5 years. How fast (% per year) should is sales be growing?

Reference no: EM132497309

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