Question 1183073
Mr Hammond is 45 years of age and has a life expectancy of 10 more years. He
wishes to invest $20,000 in an annuity that will make a level payment at the end of
each year until his death. If the interest rate is 8%, what income can Mr Hammond
expect to receive each year?
<pre>{{{highlight(highlight_green(highlight_green(highlight(system(matrix(1,3, PMT, "=", (PV[oa] * (i/m))/(1 - (1 + i/m)^(- mt))), or, matrix(1,3, PMT, "=", (PV[oa]/(1 - (1 + i/m)^(- mt))) * (i/m)), or, matrix(1,3, PMT, "=", PV[oa]/((1 - (1 + i/m)^(- mt))/(i/m)) ))))))}}}
When either of the 3 is applied, he should be expecting annual payments of {{{highlight_green("$2,980.59"))}}}, at the END of each year, for  10 years.
So, the formula for the present value of an ORDINARY ANNUITY was used. I may be WRONG. Tutor IKLEYN's answer is more practical though,
since she used the formula for payments/payouts at the beginning of the year (ANNUITY DUE) - which is when payments are normally 
made - as opposed to the end. To be 100% certain though, the problem needs to state when exactly he's expecting these payouts.
<u><b><font color=red>I RETRACT</b></font></u>
I actually read the problem AGAIN, something I didn't do before, and it clearly states that he wishes to get the annual payments 
at the END of the year, so {{{highlight_green("$2,980.59"))}}}, at the END of each year, for  10 years is what he should expect.