Your client purchases an annuity for $700,000 that provides beginning of month payments for 15 years If the annuity earns 4 5 compounded monthly, what monthly payment will he receive (Taken from CIFP course materials ) ...

The purchase price is the present value of the an ...

Your client purchases an annuity for $700,000 that provides beginning-of-month payments for 15 years. If the annuity

Question:

Your client purchases an for $700,000 that provides beginning-of-month payments for 15 years. If the earns 4.5% compounded monthly, what monthly payment will he receive? (Taken from CIFP course materials.)
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,...