What is the length of the annuity time period

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1. You are considering an annuity which costs $89,500 today. The annuity pays $5,600 a year. The rate of return is 4 percent. What is the length of the annuity time period? (Do not round intermediate calculations.)

2.88 years

15.98 years

7.69 years

13.00 years

26.00 years

2. You are scheduled to receive annual payments of $11,200 for each of the next 20 years. Your discount rate is 11 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

$10,232

$11,200

$10,948

$12,432

$9,811

Reference no: EM132063933

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