Mike Carlson will receive $10,000 a year from the end of the third year to the end of the 12th year (10 payments). The discount rate is 10%. The present value today of this deferred annuity is:
A. $61,450
B. $42,185
C. $46,149
D. $50,757
Answer:D
Mike Carlson will receive $10,000 a year from the end of the third year to the end of the 12th year (10 payments). The discount rate is 10%. The present value today of this deferred annuity is:
A. $61,450 B. $42,185 C. $46,149 D. $50,757