
EXPERT ANSWER
Future value of annuity due=(1+rate)*Annuity[(1+rate)^time period-1]/rate
8,000,000=Annuity*5.11 [Taking future value of annuity due factor(10%,4 years)=5.11]
Annuity=8,000,000/5.11
which is equal to
=$1,565,558 (Approx)
Future value of annuity due=(1+rate)*Annuity[(1+rate)^time period-1]/rate
8,000,000=Annuity*5.11 [Taking future value of annuity due factor(10%,4 years)=5.11]
Annuity=8,000,000/5.11
which is equal to
=$1,565,558 (Approx)