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Calculating Deferred Annuities (Example 2)
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Natalie wishes to purchase an annuity for her retirement. Natalie is 30 years old today, and she wants the first payment to occur in 35 years when she turns 65. She would like the annuity
to make 20 equal annual installments of $20,000. How much will the annuity cost today, if i^((2))=10%?
@user-pt8jg1rk9g 3 ай бұрын
Thank you
@irafajardo8073 9 ай бұрын
@7:34 you stated "... she can start to PURCHASE her annuity which will give her 20 equal payments of 20k dollars." I don't know if I'm wrong to rephrase it as "... she can start RECEIVING 20 equal payments of 20K dollars." I'm confused. Thank you.
@StudyForceOnline 9 ай бұрын
She hasn't purchased it yet, so you can't receive something you haven't purchased
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