Question

help me out??
Garrett has an annuity that pays $2,460 at the beginning of each year. If the economy grows at a rate of 2.35% semiannually, what is the value of the annuity if he received it in a lump sum now rather than over a period of nine years?

$40,168.22

$39,701.72

$20,084.11

$19,850.86

Answer 1

can someone explain the steps to me and help me out?

Answer 2

@LizzyLove<3

Answer 3

@kenbaby do we have any information on interest rates on this annuity?

Answer 4

@amistre64

Answer 5

@ankit042 no

Answer 6

umm then I am not sure economy growth is the inflation...but there should be a standard interest rate for the instrument.

Answer 7

ok