lori tripp wants to invest in an annuity for her grandchild charles, who is 10 years...

 

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lori tripp wants to invest in an annuity for her grandchild charles, who is 10 years old. she wants the annuity to pay exactly $10,000 a year for 5 years, beginning on charles's 21st birthday (september 15, 2028). she wants to know how much money she will have to invest on march 15, 2018, when she expects to receive an inheritance check, in order to provide such an annuity. you have already determined that the annuity will earn three percent interest, compounded annually. lori tripp wants to invest in an annuity for her grandchild charles, who is 10 years old. she wants the annuity to pay exactly $10,000 a year for 5 years, beginning on charles's 21st birthday (september 15, 2028). she wants to know how much money she will have to invest on march 15, 2018, when she expects to receive an inheritance check, in order to provide such an annuity. you have already determined that the annuity will earn three percent interest, compounded annually.

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We need to find the present value of an annuity that will pay 10000 per year for 5 ye... View the full answer