Find answers to your most challenging questions with the help of IDNLearn.com's experts. Get prompt and accurate answers to your questions from our community of knowledgeable experts.

If you put up $51,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual cash flow be?

Sagot :

Annual Cash Flow is $5337.2 when $51000 principal amount with interest 6.25 percent to 15 year annuity.

By annual cash flow, what do you mean?

A cash flow statement lists all of the cash and cash equivalents that come into and go out of a business. The net amount of cash and cash equivalents coming into and going out of a business is referred to as cash flow. Money spent and money received reflect inflows and outflows, respectively. The quantity of money coming into and going out of your business over a specific time period is known as cash flow. Cash flow is crucial because it makes it possible for you to both fulfill your current financial responsibilities and make plans for the future. Cash flow, however, is a problem that many small firms face.

The calculations of Annual Cash Flow is

PV=C(1/r-1/(r(1+r)ⁿ))

where PV is present value, r rate of interest, n time period and C compounded value.

To learn more about annual cash flow, click here:

https://brainly.com/question/14801230

#SPJ4