Response:
$5,917,965.66 annually
Clarification:
The sum of $48 million accounts for the total of all annuities after a decade. To determine how much the city of Glendale must allocate each year, we use the present value of annuity equation, outlined below.
P = PV × r / 1 − (1+r)−n
Where P is the payment amount
PV = present value of annuity: $48,000,000.00
r = interest rate: 4 % = 0.04
n: number of periods: 10
P = $48,000,000 x {0.04/(1-(1+0.04)-10}
P = $48,000,000 x {0.04/ 1-0.6755641688)
P =$48,000,000x (0.04/0.3244358312)
P= $48,000,000 x 0.123290951
P= 5,917,965.66 per year