What lump sum would you need to deposit into annuity account

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Reference no: EM131955585

You would like to receive a retirement distribution check of $4,000 at the end of each month when you retire. You expect risk-free annuities to earn 4.5% compounded monthly, and you estimate you will live for 20 years beyond retirement. What lump sum would you need to deposit into the annuity account when you retire to fund the 20-year annuity of $4,000 at the end of each month?

Reference no: EM131955585

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