How much will his payments need

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Reference no: EM131985768

Tom has just won the lottery worth 1,000,000. He decides to take the annuity option that guarantees equal monthly payments over 20 years The annuity earns 4.2% interest, compounded monthly. How much will his payments need to be so that the 1,000,000 draws down to zero after 20 years? Round to the nearest cent.

Reference no: EM131985768

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