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love history [14]
3 years ago
12

If you put up $52,000 today in exchange for a 6.5 percent, 16-year annuity, what will the annual cash flow be?

Business
1 answer:
lidiya [134]3 years ago
6 0
Hi, thank you for posting your question here at Brainly.

We use an equation to solve this problem:

P = A[ \frac{1- (1+i)^{-n} }{i} ]

where P = $52,000
           i = 0.065
           n = 16

52000 = A[ \frac{1- (1+0.065)^{-16} }{0.065} ]

A = $5,323.63 per year
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