Ask Question
7 November, 02:43

Frye Company is considering investing in an annuity contract that will return $50,000 annually at the end of each year for 20 years. What amount should Frye Company pay for this investment if it earns an 8% return?

+1
Answers (1)
  1. 7 November, 05:45
    0
    We solve the problem but first, let us identify the given values.

    Year contract = 20 years

    Returned annually $50,000 and earns an 8% returned.

    Solving for companies investment is shown below:

    Company investment = $50,000 * 9.81815 (for 20 years and 8% interest)

    Company investment = $490, 907.5
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Frye Company is considering investing in an annuity contract that will return $50,000 annually at the end of each year for 20 years. What ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers