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f you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash flow be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Annual cash fow

f you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash flow be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Annual cash fow

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash flow be? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g, 32:16.) Annual cash fow
Transcribed Image Text:you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash flow be? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g, 32:16.) Annual cash fow
Expert Solution
Step 1

Present value (PV) = $41000

Interest rate (r) = 5.1%

Number of annual payments (n) = 15

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