Question
b. Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 25-year annuity is $1 million and the
b. Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 25-year annuity is $1 million and the annuity earns a guaranteed annual return of 12 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 25-year annuity is $1 million and the annuity earns a guaranteed annual return of 12 percent. The payments are to begin at the end of six years.
Can you show how to enter it into the Financial Calculator, please?!
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International Finance
Authors: Keith Pilbeam
4th Edition
0230362893, 978-0230362895
