A winner of the multi-state lotto won a one-time payout and decided to invest part of it into an annuity. If the winner invests $9,500,000.00 into a 30 year annuity that pays 3.1 %, compounded monthly and makes each month payments. What is the amount of each month payments? The payment would be $ (Round to 2 decimal places.)

A winner of the multi-state lotto won a one-time payout and decided to invest part of it into an annuity. If the winner invests $9,500,000.00 into a 30 year annuity that pays 3.1 %, compounded monthly and makes each month payments. What is the amount of each month payments? The payment would be $ (Round to 2 decimal places.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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An insurance settlement of $3 million must replace Trixie Eden's income for the next 30 years. What income will this settlement provide at the end of each month if it is invested in an annuity that earns 8.1%, compounded monthly? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. ordinary annuityannuity due (b) Solve the problem. (Round your answer to the nearest cent.) $
please show the step by step solution. Do not skips steps. Explain your steps Please write on paper
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