Effective Writing 10th Edition by Claire May,Gordon May

Exercise 14

Lori Tripp wants to invest in an annuity for her grandchild Charles, who is ten years old. She wants the annuity to pay exactly $10,000 a year for five years, beginning on Charles's 21st birthday (September 15, 2024). She wants to know how much money she will have to invest on March 15, 2014, when she expects to receive an inheritance check, in order to provide such an annuity. You have already determined that the annuity will earn three percent interest, compounded annually.
Write a letter to Ms. Tripp explaining annuities and the amount she would need to invest on March 15, 2014, to set up the plan she has in mind. Invent any facts you may need to complete the letter.