ANSWER =$

(1 point) (Exercise 3.20) A woman nas an inheritance in a trust tund tor family members lett by ner recently deceased father that will pay S50000 at the end ot each year indefinitely into the future. She nas just turned 58 and does not think that this perpetuity-immediate meets ner retirement needs. She wishes to exchange the value ot ner inheritance in the trust tund tor one which will pay ner a 7-year deterred annuity-immediate providing ner a retirement annuity Witn annual payments at the end ot each year tor 20 years following the 7-year deferral period. She would nave no remaining interest in the trust tund atter 20 payments are made. It the trustee agrees to ner proposal, now much annual retirement income would sne receive? The trust tund is earning an annual effective rate ot interest equal to ANSWER = S