An insurance company is trying to sell you a retirement annuity. The annuity will give you 20 payments with the first payment in 12 years when you retire. The insurance firm is asking you to pay $50,000 today. If this is a fair deal,what must the payment amount be (to the dollar)if the interest rate is 8 percent?
A)$9,472
B)$10,422
C)$12,824
D)$5,093
E)$11,874

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The Answer of An insurance company is trying to sell you a retirement annuity. The annuity will give you 20 payments with the first payment in 12 years when you retire. The insurance firm is asking you to pay $50,000 today. If this is a fair deal,what must the payment amount be (to the dollar)if the interest rate is 8 percent?
A)$9,472
B)$10,422
C)$12,824
D)$5,093
E)$11,874

An Insurance Company Is Trying to Sell You a Retirement