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Business, 12.04.2021 23:10 francisco2001

What is the amount of the annuity purchase required if you wish to receive a fixed payment of $210,000 for 25 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 25-year annuity is $1.2 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 25-year annuity is $1.2 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of eight years.

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What is the amount of the annuity purchase required if you wish to receive a fixed payment of $210,0...
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