County ranch insurance company wants to offer a guaranteed


County Ranch Insurance Company wants to offer a guaranteed annuity in units of ?$800?, payable at the end of each year for 15 years. The company has a strong investment record and can consistently earn 10% on its investments after taxes. If the company wants to make? 1% on this? contract, what price should it set on? it? Use 9?% as the discount rate. Assume it is an ordinary annuity and the price is the same thing as present value.

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Financial Management: County ranch insurance company wants to offer a guaranteed
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