What would you be willing to pay for this annuity if you


If an insurance company offers you annuity payments of $40,000 per year for the first 10 years of retirement and $50,000 per year for the next 10 years, what would you be willing to pay for this annuity if you have a required rate of return of 7.6%? Assume beginning of year payments.

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Financial Management: What would you be willing to pay for this annuity if you
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