Renowned violinist was recently offered contract

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A renowned violinist was recently offered a contract with the BSO that pays $3,000,000 today followed by an annuity of an unknown amount that will be paid at the end of each year, starting at the end of year one, for 5 consecutive years. Her colleague was just offered a contract that pays $6,000,000 today. What value of the annuity would make the violinist’s contract equal to the present value of her colleague’s contract if the interest rate is 4%? A. $655,064 B. $673,881 C. $600,000 D. $618,119 E. $636,475

Reference no: EM131318891

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