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How do I do C? I did incorrectly as seen below a. What is the amount of the annuity purchase required if you wish to
How do I do C? I did incorrectly as seen below
a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $220,000 for 15 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 15-year annuity is $1.3 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 15-year annuity is $1.3 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of seven years. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16)) Answer is complete but not entirely correct. a Present value Annual cash flows Annual cash flows $ 1,673,337.49 $ 170,915.91 $ 508,982.67 cStep by Step Solution
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