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What should be the worth of the annuity

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Reference no: EM132713207

Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%;

Problem a. What should be the present value of this annuity?

Problem b. If you are given the first payment immediately starting today, what should be the worth of this annuity?

Reference no: EM132713207

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