Problem 6-5 Calculating Annuity Cash Flows [LO1] If you put up $41,000 today in exchange for a 6.75 percent, 14-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.)
Problem 6-5 Calculating Annuity Cash Flows [LO1] If you put up $41,000 today in exchange for a 6.75 percent, 14-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.)
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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![**Problem 6-5: Calculating Annuity Cash Flows [LO1]**
If you put up $41,000 today in exchange for a 6.75 percent, 14-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 flow:** [Input box for answer]
*Note: This problem is designed to help students understand how to calculate the equal payments of an annuity using the present value formula. Students should use the given interest rate and time period to determine the constant annual payment that will equate to the initial investment.*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2e6bca0-5751-4e3b-9150-515606817feb%2Fb9e3d0c3-32bd-4dad-b046-cd8ed6688d1e%2Fkauisho_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Problem 6-5: Calculating Annuity Cash Flows [LO1]**
If you put up $41,000 today in exchange for a 6.75 percent, 14-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 flow:** [Input box for answer]
*Note: This problem is designed to help students understand how to calculate the equal payments of an annuity using the present value formula. Students should use the given interest rate and time period to determine the constant annual payment that will equate to the initial investment.*
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