Nick Can Purchase an Annuity That in 5 Years (End

question 192

Multiple Choice

Nick can purchase an annuity that in 5 years (end of 5^th year) will pay him $8,500 per year for 10 years. If interest is 5.7% compounded annually, determine how much Nick will pay now to purchase the annuity.

• A) $52,445.51
• B) $52,068.95
• C) $51,991.42
• D) $50,839.07
• E) $50,440.68

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