American General offers a 14-year annuity with a guaranteed rate of 5.62% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1500 annually over the 14 year period?
+118723 American General offers a 14-year annuity with a guaranteed rate of 5.62% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1500 annually over the 14 year period?
this is the present value of an ordinary anuity
i= 0.0562, n=14, C= 1500 find PV
You can plug the numbers in. 
+118723 American General offers a 14-year annuity with a guaranteed rate of 5.62% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1500 annually over the 14 year period?
this is the present value of an ordinary anuity
i= 0.0562, n=14, C= 1500 find PV
You can plug the numbers in.
