An insurance settlement of $1.5 million must replace Trixie Eden's income for the next 35 years....

An insurance settlement of $1.5 million must replace Trixie Eden's income for the next 35 years. What income will this settlement provide at the end of each month if it is invested in an annuity that earns 7.5%, compounded monthly?

Solve the problem. (Round your answer to the nearest cent.)

Expert Solution

Calculating Monthly Payment,

using TVM Calculation,

PMT = [PV = 1,500,000, FV = 0, N = 420, I = 0.075/12]

PMT = $10,113.64

Monthly Payment = $10,113.64

jeff jeffy answered 2 years ago

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