Montz Company is considering investing in an annuity contract that will return $80,000 annually at the end of each year for 12 years. Montz has obtained the following values related to the time value of money to help in its planning process and compounded interest decisions. To the closest dollar, what amount should Montz Company pay for this investment if it earns a 9% return?

Question

Montz Company is considering investing in an annuity contract that will return $80,000 annually at the end of each year for 12 years. Montz has obtained the following values related to the time value of money to help in its planning process and compounded interest decisions.  To the closest dollar, what amount should Montz Company pay for this investment if it earns a 9% return?

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The Answer of Montz Company is considering investing in an annuity contract that will return $80,000 annually at the end of each year for 12 years. Montz has obtained the following values related to the time value of money to help in its planning process and compounded interest decisions.  To the closest dollar, what amount should Montz Company pay for this investment if it earns a 9% return?

Montz Company Is Considering Investing in an Annuity Contract That