Ask Question
4 December, 15:25

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?

+2
Answers (1)
  1. 4 December, 19:13
    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?
Find 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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers