You want to establish an annuity that will pay you $14,000 per year for 22 years. If the prevailing rate in the economy is 3.75%, how much must you deposit today to establish this annuity. $173,669.70 $207,237.61 $238,429.37 $215,000.02

You want to establish an annuity that will pay you $14,000 per year for 22 years. If the prevailing rate in the economy is 3.75%, how much must you deposit today to establish this annuity. $173,669.70 $207,237.61 $238,429.37 $215,000.02

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Question

You want to establish an annuity that will pay you $14,000 per year for 22 years. If the prevailing
rate in the economy is 3.75%, how much must you deposit today to establish this annuity.
$173,669.70
$207,237.61
$238,429.37
O $215,000.02
88

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