Question:

American General offers a 10-year annuity with a guaranteed

Last updated: 8/2/2022

American General offers a 10-year annuity with a guaranteed

American General offers a 10-year annuity with a guaranteed rate of 4.95% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1900 annually over the 10 year period? How much should a customer pay for this annuity?