if you put up $50,000 today in exchange for a 6.75 percent, 14 year annuity, what will the annual cash flow be?

The annual cash flow is $5631.832765 rounded off to $5631.83

Explanation:

An annuity is a series of cash flows which are of constant amount, occur after equal intervals of time and are for a limited of defined period of time. The present value of an annuity can be calculated using the following formula,

PV = Cash flow * [ (1 - (1+r)^-n) / r ]

Where,

Cash flow is the constant annuity payment per periodr is the required rate of returnn is the number of periods

As the annuity is taken in exchange of $50000 today, we can say that the present value of annuity is $50000. Thus, to calculate the cash flow or annuity payment per period, we can input the available values of all the variables in the formula above.

Let the annual annuity payment or cash flow be x.

50000 = x * [ (1 - (1+0.0675)^-14) / 0.0675 ]

50000 / [ (1 - (1+0.0675)^-14) / 0.0675 ] =  x

x = $5631.832765 rounded off to $5631.83

The federal reserve took an expansionary approach during the crisis. this was done by expanding the money supply and boosting liquidity. this can be seen in the fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. the fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.

False according to edgenuity