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Solution Library
Calculation Of Annuity To Be Paid To Insurance Company
Question
A individual has accumulated some wealth in a self-administered stock market investment fund and now wants to cash in (or liquidate) a part of this fund and use it to purchase an annuity from an insurance company that will pay her $65,000 annually beginning exactly one year from today for the next 15 years. If the applicable interest rate by the insurance company is 4.5%, how much will she have to pay for this annuity?
Summary
The question belongs to Finance and it discusses about calculation of annuity to be paid to an insurance company which will pay $65000 annually, for the next 15 years.
Total Word Count 86
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