Calculate the Annual Cash Flows of a $2 Million, 10-Year

question 45

Multiple Choice

Calculate the annual cash flows of a $2 million, 10-year fixed-payment deferred annuity earning a guaranteed 8 percent per year if annual payments are to begin at the end of the sixth (6^th) year.

• A)$218,973.21.
• B)$202,752.97.
• C)$343,321.86.
• D)$405,505.95.
• E)$437,946.42.

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Definitions:

KMS

Stands for Knowledge Management System, a system for managing knowledge in organizations, supporting the creation, collection, storage, dissemination, and utilization of knowledge and information.

OLTP

Online Transaction Processing, a class of systems that facilitates and manages transaction-oriented applications, typically for data entry and retrieval transaction processing.

Historical Data

Data concerning past events and transactions that are stored and analyzed for trends, forecasting, and making decisions.

Explicit Knowledge

Knowledge that is easily communicated and shared, typically in the form of documents, manuals, or any documented procedure.