Two Annuities Have Equal Present Values and an Applicable Discount

question 100

Multiple Choice

Two annuities have equal present values and an applicable discount rate of 7.25 percent. One annuity pays $2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year? 

• A) $2,331.00 
• B) $2,266.67 
• C) $2,500.00 
• D) $2,390.50 
• E) $2,681.25 

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