Morgan Jennings, a geography professor, invests $89,000 in a parcel of land that is expected to increase in value by 13 percent per year for the next eight years. He will take the proceeds and provide himself with a 18-year annuity.

Assuming a 13 percent interest rate, how much will this annuity be? Use Appendix A and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Answer rating: 100% (QA)

To determine the annuity amount we need to calculate the future value of Morgan Jennings investment ... View the full answer