单选题
What is the maximum price an investor should be willing to pay (today) for a 10 year annuity that will generate $ 500 per quarter (such payments to be made at the end of each quarter) , given he wants to earn 12 percent, compounded quarterly?
A、
A. $11300.
B、
B. $11557.
C、
C. $6440.
【正确答案】
B
【答案解析】
Using a financial calculator: N=10×4 =40; I/Y=12/4=3; PMT=-500; FV=0; CPT PV =11557.
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