Answered: If you put up $31,000 today in exchange…

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If you put up $31,000 today in exchange for a 5.25 percent, 15-year annuity, what will the annual cash flow be?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1MC

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Question

d
If you put up $31,000 today in exchange for a 5.25 percent, 15-year annuity, what will the annual cash flow be?
Multiple Choice
$465,000.22
$2,066.67
$3,037.29
$1,409.79

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