1. If you put up $37,000 today in exchange for a 8.25 percent, 19-year annuity, what...

1. If you put up $37,000 today in exchange for a 8.25 percent, 19-year annuity, what will the annual cash flow be?

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Expert Solution

Annual cash flow=Value of annuity*rate/(1-1/(1+rate)^n)=37000*8.25%/(1-1/(1+8.25%)^19)=3922.277

jeff jeffy answered 2 years ago

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