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You just purchased an annuity that will pay you $24,000 a year for 25 years,  starting today....

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Finance

You just purchased an annuity that will pay you $24,000 a yearfor 25 years,  starting today. What was the purchaseprice if the discount rate is 8%?

$256,195

$251,409

$245,621

$276,690

$258,319

Answer & Explanation Solved by verified expert
4.0 Ratings (785 Votes)
Information provided Annual payment 24000 Time 25 years Discount rate 8 The question is concerning finding the present value of an annuity due since the question mentions that    See Answer
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Transcribed Image Text

You just purchased an annuity that will pay you $24,000 a yearfor 25 years,  starting today. What was the purchaseprice if the discount rate is 8%?$256,195$251,409$245,621$276,690$258,319

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