How much must be invested today in order to generate a five-year annuity of $1,000 per year, with the first payment one year from today, at an interest rate of 12%?
A. $3,604,78
B. $3,746.25
C. $4,037.35
D. $4,604.78
Answer:A
How much must be invested today in order to generate a five-year annuity of $1,000 per year, with the first payment one year from today, at an interest rate of 12%?
A. $3,604,78 B. $3,746.25 C. $4,037.35 D. $4,604.78