Question

f the present value of the annuity is $45,000, what should be the size of each payment from the annuity

Answer 1

"$571.92" is the correct solution.

Step-by-step explanation:

The given problem is incomplete. Please find attachment of the complete question.

The given values are:

Payments will be made for

=
`8(1)/(4) \ years`

At the rate of:

=
`5.75 \ percent`

=
`0.0575 \ per \ year`

The present value of annuity is:

=
`45000`

Let the size of each payment will be "d".

Now,

⇒
`45000=(1-(1+(0.0575)/(12))^(-99))/((0.0575)/(12))* d`

⇒
`d = 571.92` ($)