1. Calculate the following:

1. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $200,00 for 20 years? Assume that Annuity will earn 10% per year.

b. Calculate the annual cash flow from 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%. The payments are to begin at the end of five year