A representative of a reputable financial services company has approached
you as manager of a four-person group of anesthesiologists with an
opportunity to purchase a 10-year annuity due for each member of the group.
The annuity due would pay $40,000 each year beginning 5 years from now (i.E. ,
at time = 5) .
What is the most you would be willing to pay now, per each
physician, for this investment? Assume an appropriate discount rate of 7%. Do
not include unit of measurement ($) in your answer below.