What is the amount of annuity purchase

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Reference no: EM132696056

Calculate the following:

A. What is the amount of annuity purchase required if you wish to receive a fixed payment of $240,000 for 20 years? assume the the annuity will earn 7 percent per year.

B. Calculate the annual cash flows from a $2.5 million, 20 year fixed payment annuity earning a guaranteed return of 7 percent per year if payments are to begin at the end of the current year.

Reference no: EM132696056

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