You are a successful entrepreneur with an elderly aunt. You make arrangements to put $1.5 million in a trust account, and instruct the trustee to make equal, annual payments to her in time periods 1-20. At the end of period 20, the value of the account will equal zero.
a.) If the account earns 5% per year, how large will the annual payments be?
b.) If the account earns 7% per year, how large with the payments be?