Question: Can you provide a solution for this please - You have just received an inheritance which consists of 50,000 per year for 20 years.Assume that

Can you provide a solution for this please -

You have just received an inheritance which consists of 50,000 per year for 20 years.Assume that a 4 percent interest rate is used to evaluate the annuity and that you receive each payment at the beginning of the year.

(a) What is the present value of the annuity?

(b) How much interest is earned on the present value to make the 50,000-per-year payment?

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