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# Tom has just won the lottery worth 1,000,000. He decides to take the annuity option that guarantees equal monthly payments over 20 years The annuity...

Tom has just won the lottery worth 1,000,000. He decides to take the annuity option that guarantees equal monthly payments over 20 years The annuity earns 4.2% interest, compounded monthly. How much will his payments need to be so that the 1,000,000 draws down to zero after 20 years. ? Round to the nearest cent.

payment={(r*PV)/(1-(1+r) -n } where r=4.2/1200=0.0035... View the full answer

The required equal... View the full answer

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