Answered: You make annuity payments of $25,000…

You make annuity payments of $25,000 per year for the next 11 years. If you earn 6.67% return, how much is this annuity worth at the end of 11 years from today? 793,098 190,587 387,757 O 50,863

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

You make annuity payments of $25,000 per year for the next 11 years. If you earn
6.67% return, how much is this annuity worth at the end of 11 years from today?
793,098
190,587
387,757
O 50,863

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