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You Are Comparing Two Annuities with Equal Present Values

Question 48

Multiple Choice

You are comparing two annuities with equal present values.The applicable discount rate is 6.65 percent,compounded annually.One annuity pays $4,500 on the first day of each year for 25 years.How much does the second annuity pay each year for 25 years if it pays at the end of each year?


A) $4,708.03
B) $4,623.87
C) $4,608.51
D) $4,799.25
E) $4,747.50

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