What is the most that you are willing to pay

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Question 1 - Atlas Insurance wants to sell you an annuity, which will pay you $3,400 at the beginning of each quarter for 45 years. You want to earn a minimum rate of return of 6.5 percent per year. What is the most that you are willing to pay as a lump sum today to buy this annuity (look at the TVM power points in announcements and use the TVM function on the EZ financial calculator app that can be downloaded on your phone)?

Question 2 - Trustmark Bank wants to sell you an annuity that will pay you $20,000 per year for 30 years. If the required return is 7%, what is the future value of this annuity in 30 years.

Reference no: EM133176183

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