Question
Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $1.7 million and the annuity
Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $1.7 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of five years.(Do not round intermediate calculations.Round your answer to 2 decimal places. (e.g., 32.16))
I have tried solving w/ calculator as: N=20 I=10 PV=1.7mil*(1+.10)^5 and solve for PMT. The answer I get doing it by hand and by calculator is: $321,588.83 but the Check My Answer marks it incorrect. I am unsure what I'm doing wrong.
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