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Annuity Value

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If you have a required rate of return of 12%, what would you be willing to pay for an annuity that will pay you $200/month for the next 5 years?
I need to see the calculation steps.

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Solution Summary

The solution explains how to determine the amount to be paid for an annuity given the required return.

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What you would be willing pay is the present value of annuity. The present value of annuity can be calculated using the ...

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