The terms of a single parent's will indicate that a child will receive an ordinary annuity of

Question:

The terms of a single parent's will indicate that a child will receive an ordinary of $16,000 per year from age 18 to age 24 (so the child can attend college) and that the balance of the estate goes to a niece. If the parent dies on the child's 14th birthday, how much money must be removed from the estate to purchase the (Assume an interest rate of 6%, compounded annually.)
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...