Explore BrainMass

Explore BrainMass

    Present value of annuity

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

    BE2-27
    Kilarny Company is considering investing in an annuity contract that will return $20,000 annually at the end of each year for 15 years. What amount should Kilarny Company pay for this investment if it earns a 6% return?

    © BrainMass Inc. brainmass.com June 3, 2020, 5:05 pm ad1c9bdddf
    https://brainmass.com/business/annuity/present-value-of-annuity-13948

    Solution Preview

    Payment A Annual
    No of years= 15
    No of Periods= 15
    Discount rate annually= ...

    Solution Summary

    The solution calculates the present value of an annuity.

    $2.19

    ADVERTISEMENT