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Mr. Tariq wants to buy an immediate annuity that offers a fixed interest rate of...

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Finance

Mr. Tariq wants to buy an immediate annuity that offers a fixed interest rate of 7%. He wants to receive a cash flow of Rs. 5,000 per month for the next 30 years. Please calculate:

1. How much money does he needs to put into an annuity to generate this cash flow now?
2. How much interest he will be going to have for this annuity scheme?

Please ignore any fees charged or bonuses credited by Insurance company.

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