Calculate the annual cash flows annuity payments from a


Question: Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 15-year annuity is $750,000 and the annuity earns a guaranteed annual return of 6.85%. The payments are to begin at the end of 5 years. In this case, the first annuity is to be received 5 years from today. The initial sum today will have to be compounded by 5 periods to estimate the annuities.

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Finance Basics: Calculate the annual cash flows annuity payments from a
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