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Donald Frump invests an inheritance of $50,000 into an investment account that pays simple interest...

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Accounting

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Donald Frump invests an inheritance of $50,000 into an investment account that pays simple interest at 6% per annum and leaves it there for 48 months. The investment company sends him a cheque after 48 months. He immediately takes this cheque and buys an annuity from an insurance company that sends him an 10 years. The annuity is based on an effective interest rate of 6%, money compounded annually. How much will the annual cheque be (rounded to the nearest dollarle Multiple Choice $8,424 Cannot be determined from the data provided $10,888 $9,562 $6,676

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