3-97 Calculate the Annual Cash Flows of a $2 Million,10-Year

question 90

Multiple Choice

3-97 Calculate the annual cash flows of a $2 million,10-year fixed-payment annuity earning a guaranteed 8 percent per annum if annual payments are to begin at the end of year 6.

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