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a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $200,000 for 20 years?
Posted: Sun May 08, 2022 10:10 am
by answerhappygod
- A What Is The Amount Of The Annuity Purchase Required If You Wish To Receive A Fixed Payment Of 200 000 For 20 Years 1 (27.88 KiB) Viewed 28 times
a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $200,000 for 20 years? Assume that the annuity will earn 10 percent per year. b. Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $1 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of the current year. c. Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $1 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of five years. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) $ a. Present value b. Annual cash flows c. Annual cash flows 1,702.712.74 117,459.62 mmmmmmm