An inheritance of £400000 will provide how much at the end of each year for the next 20 years , if money is worth 7% compounded annually
for that, you need the following formula:
ANNUITY FOR A PRESENT AMOUNT WITH END OF TIME PERIOD PAYMENTS
a = (p*r)/(1-(1/(1+r)^n))
a is the annuity.
p is the present amount.
r is the interest rate per time period.
n is the number of time periods.
p = 400,000
r = .07
n = 20
formula becomes:
a = (400,000 * .07)/(1-(1/(1+.07)^20))
solve for a to get a = 37,757.1703
you can also use an online calculator that can be found at https://arachnoid.com/finance/index.html
results from that calculator are shown below:
a fairly decent representation of financial formulas can be found at the following reference:
https://www.algebra.com/algebra/homework/Finance/THEO-2016-04-29.lesson#notes