Fin 320 Anna is willing to settle for an annuity that carries an interest rate assumption of 9%. What annual payment would be acceptable to her?
Anna Waldheim was seriously injured in an industrial accident. She sued the responsible parties and was awarded a judgment of $2,000,000. Today, she and her attorney are attending a settlement conference with the defendants. The defendants have made an initial offer of $156,000 per year for 25 years. Anna plans to counteroffer a