Problem:
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 of problem:
This question basically belongs to Finance as well as it discusses about computation of annuity to be paid to an insurance company which will pay $65000 annually, for the next 15 years.