Explore BrainMass

Explore BrainMass

    Annuity Value

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:49 pm ad1c9bdddf
    https://brainmass.com/business/annuity/annuity-value-required-rate-return-154274

    Solution Preview

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

    Solution Summary

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

    $2.19

    ADVERTISEMENT