You want to buy an annuity that will pay you $1000 per year for 20 years. You find an account that will pay 4% per year, compounded annually. How much must you deposit today in order to fund this annuity? Round answer to the nearest dollar .
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=1000[1-(1.04)^-20]/0.04
=1000*13.5903263
=$13590(Approx)
You want to buy an annuity that will pay you $1000 per year for 20 years....