You have recently received an inheritance valued at $1,249,766.40. The entire amount was placed in a trust account, and the trustee is authorized to make equal, annual payments to you for the next 25 years (in time periods 1-25). At the end of period 25 the value of the account will equal zero.
a.) If you expect the account to earn 4% per year, how large will these payments be?
b.) If you expect the account to earn 6% per year, how large will these payments be?