You pay $32,000 today (t=0) and obtain (purchase) a 9 percent annuity (r=0.09) with 24 annual payments (you will receive 24 payments). The first payment on the annuity is made in two years (t = 2). What will the annual cash flow be (the payment C)? Please draw the timeline and match it to the annuity formula

Answer rating: 100% (QA)

To determine the annual cash flow or payment C for the annuity we can use the annuity formula an... View the full answer