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When Ms. Jones retired, she received a lump sum of $1,000,000 from her pension plan. She then invested this sum in an annuity account that would pay her an equal amount at the end of each year for the next 25 years, so that the initial capital of $1,000,000 will be totally depleted. The interest rate for this annuity account is 4% per year. Unfortunately, Ms. Jones passed away after receiving the 20th annual payment. Her estate lawyer must now determine the amount of money left that will go to Ms. Jones's heirs. Show below what this amount is.
ANSWER:
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