Question

How much annual income would need to be generated over a 5 year period, to be equivalent to

$4,000 over an 8 year period? Consider 6% nominal interest (compounded annually) for both cases.

Step 1

Calculate the annual income over a period of 5 years as follows:

MS-Excel --> Formulas --> Financials --> PMT

Step 2

Calculate the annual income over a period of 8 years as follows:

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