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What rate of return will he earn on the investment

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Problem - You just inherited an annuity that will pay you $10,000 per year for 10 years, and you receive the first payment today. A professional investor offers to give you $60,000 for the annuity. If you sell it to him, what rate of return will he earn on the investment? If you think a "fair" rate of return would be 6%, how much should you ask for the annuity?

Reference no: EM132726615

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