+0  
 
+4
176
2
avatar

A wealthy businessman left an estate of $2,500,000 to his 3 surviving children. The children are to receive annual annuity payments in the ratio of 3:2:1 for 30 years. If the estate earns 8% compounded annually, what are the annuity payments of the 3 surviving children? Thanks for help.

Guest Feb 23, 2017
 #1
avatar+12561 
0

According to annuity calculator at 

http://www.calculator.net/annuity-payout-calculator.html?cstartingprinciple=2500000&cinterestrate=8&cinflationrate=0&cyearstopayout=30&camounttopayout=5000&cpayfrequency=annually&ctype=fixlength&x=55&y=4

 

payout would be 222,268.58 annually

divided amongst the three

3/6 = $ 111134.29   annually

2/6 =    74,089.53

1/6=     37,044.76

ElectricPavlov  Feb 23, 2017
 #2
avatar
0

Hello EP: A slight mistake in copying the payment. The total payment is 222,068.58 instead of 222,268.58 that you used. The allocated payments, therefore, are:

$37,011.43

$74,022.86

$111,034.29

Guest Feb 23, 2017

9 Online Users

New Privacy Policy

We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive information about your use of our website.
For more information: our cookie policy and privacy policy.