The pension plan is also considering investing 70 million


The pension plan is also considering investing $70 million of its cash today at a 3.5 percent annual interest for five years with a commercial bank. The bank in return will pay an annuity due at the beginning of year 6 for the next 15 years. How much will the annual payments be from years 6 to 21, if the rate at which these payments are discounted is also 3.5 percent?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The pension plan is also considering investing 70 million
Reference No:- TGS02365067

Expected delivery within 24 Hours