Answer:
Annuity will be $33112.644
Explanation:
We have given future value ( FV ) = $4000000
Rate of interest r = 5% = 0.05
Number of periods n = 40
We know that future value is given by [tex]Futurte\ value(FV)=\frac{A}{r}[(1+r)^n-1][/tex]
Here A is annuity
So [tex]4000000=\frac{A}{0.05}[(1+0.05)^{40}-1][/tex]
[tex]200000=A[(1+0.05)^{40}-1][/tex]
[tex]200000=A\times 6.0399[/tex]
[tex]A=$33112.644[/tex]
So annuity will be $33112.644
