Question

If you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash flow be?

Answer 1

Answer:

$3,976.78

Explanation:

In this question, we use the PMT formula which is presented in the spreadsheet.  

The NPER represents the time period.

Provided that,  

Present value = $41,000

Future value = $0

Rate of interest = 5.1%

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the answer is $3,976.78