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 (6th) year.

$437,946.42

Explanation:

Present Value of Deferred Annuity = $2,000,000

Value at the end of Year 5 = $2,000,000*(1.08)^5

Value at the end of Year 5 = $2,938,656.15

Calculation of Annual Payment from Annuity using the TVM

Annual payment = PMT [PV, FV, N, I]

Annual payment = PMT [2,938,656.15, 0, 10, 0.08]

Annual payment = $437,946.42

So, the Annual Payment from annuity is $437,946.42.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

just took it 100%