Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help with c 1 10 points a. What is the amount of the annuity purchase required if you wish to receive a fixed payment
Need help with c
1 10 points a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $240,000 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 $1.4 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 $1.4 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of six years. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16) x Answer complete but not entirely correct. a b. c. Present value Annual cash flows Annual cash flows $ 2,043,255.29 $ 164,443,47 $ 0.00 * 1 10 points a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $240,000 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 $1.4 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 $1.4 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of six years. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16) x Answer complete but not entirely correct. a b. c. Present value Annual cash flows Annual cash flows $ 2,043,255.29 $ 164,443,47 $ 0.00 *Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started