A client has $5,000,000 saved and can convert that to an annuity that will generate 20 equal semiannual payments starting 6 months from now and has a remaining value of $0.00 10 years from now. Assuming a rate of return (i.e. crediting rate) of 5.00%, how much will her annuity payments be every 6 months (rounded to the nearest dollar)?

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Calculation of annuity amount As per given information we ... View the full answer