On his retirement, Rob received a lump sum of $300 000 from his employer Taking advantage of existing tax legislation, he invested his money in an annuity that provides for payments of $20 000 at the end of every 3 months If interest is 4 25 compounded quarterly, how long will the annuity exist ...

PV 300 000 PMT 20000 i 425 4 10625 n ln 1 P ...

On his retirement, Rob received a lump sum of $300 000 from his employer. Taking advantage of

Question:

On his retirement, Rob received a lump sum of $300 000 from his employer. Taking advantage of existing tax legislation, he invested his money in an that provides for payments of $20 000 at the end of every 3 months. If interest is 4.25% compounded quarterly, how long will the exist?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...