Investment for a group of anesthesiologists-annuity

Reference no: EM1363748

A representative of a reputable financial services company has approached you as a manager of a four-person group of anesthesiologists with an opportunity to purchase a 10-year annuity due for each member of the group. The annuity due would pay $40,000 each year beginning 5 years from now (i.e. at time = 5). What is the most you would be willing to pay now, per each physician, for this investment? Assume an appropriate discount rate of 7%.

Reference no: EM1363748

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