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As the CFO of an insurance company, you have just agreed to pay Rebecca Smith...

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As the CFO of an insurance company, you have just agreed to pay Rebecca Smith a sum assured. The sum assured provides for Rebecca to receive $5,000 per year at the end of the year for each of the next 5 years. Assuming a discount rate of 1096, what is the value of the sum assured to Rebecca today? Type of Cash Flow Periods Interest Rate Factor PV of $1 10% 0.6209 FV of $1 10% 1.6105 PV ordinary annuity 10% 3.7908 10% 6.1051 FV ordinary annuity PV annuity due 10% 4.1699 $20,849 a. $30,526 b. $18.954 $15,523 d

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