Answer:
the price of a 25-year annuity is $845.64
Explanation:
The computation of the price is as follows:
The price of a 25-year annuity is
= Annual payment × ((1 - (1 + discounted rate)^(number of years)) ÷ discounted rate)
= $60 × ((1 - (1 + 5%)^(-25)) ÷ 5%)
= $845.64
hence, the price of a 25-year annuity is $845.64
Therefore it could be determined by applying the above formula so that the price could come
