Answer:
annual payment = $40000
Explanation:
given data
annual compound interest = 4%
fund value = $1,000,000
to find out
annual payment
solution
we get here annual payment that is express as
annual payment = fund value × annual compound interest ..................1
put here value we get
annual payment = 4% × $1,000,000
annual payment = 0.04 × $1,000,000
annual payment = $40000
