You pay $628 thousand to buy a 20-year annuity with annual payments to be received at...

You pay $628 thousand to buy a 20-year annuity with annual payments to be received at the end of each year. What is the annual payment if the discount rate is 5.88%? Express your answer in $ thousands, round to the nearest $0.1 thousand. E.g., if your answer is $50,583, record it as 50.6.Blank 1. Calculate the answer by read surroundi

Expert Solution

What is the annual payment if the discount rate is 5.88%

=628/((1-(1+5.88%)^(-20))/5.88%)

=54.22 thousand

the above is answer..

jeff jeffy answered 3 years ago

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