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sattari [20]
2 years ago
15

If you put up $43,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual cash flow be?

Business
1 answer:
AysviL [449]2 years ago
5 0

Answer:

The annual cash flow will be $4,500.

Explanation:

Use following formula to calculate Annual Cash flow from Annuity.

Present value of annuity = annual cash flow ( 1 - ( 1 / ( 1 + rate of interest )^time period ) ) / rate of interest

PVA = C ( 1 - ( 1 / ( 1 + r )^t ) ) / r

$43,000 = C ( 1 - ( 1 / ( 1 + 0.0625)^15 ) ) / 0.0625

$43,000 = C x 9.5555

C = $43,000 / 9.5555

C = $4,500

So, the annual cash flow will be $4,500.

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Explanation:

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2 years ago
The following information relates to a product produced by Faulkland Company:
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Answer:

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Explanation:

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One of the most challenging tasks for any firm, including In Fine Fettle, is determining how much to spend on promotion. Four ba
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