Answer:
The Annual Cash Flow will be $5,023.26.
Explanation:
Use the PV Annuity formula to calculate the Annual Cash Flow. The formula is:
PV = R *{ { 1 - [ (1 + i) ^ -n] } / i }
where
R = Annual Cash Flow.
i = Interest Rate which 6.25%.
n = Number of Periods which is 15.
and
PV = Present value OR Amount Invested which in this case is $48,000.
Simply re-arrange the formula for "R" and you will get $5,023.26.
