Alex Sanchez won a $12 500 prize that he deposited in an account paying 5 95 com pounded semi annually for 10 years At the end of 10 years, he reinvested the balance into an annuity that paid $500 at the beginning of each month starting with the date of reinvestment If interest on the annuity is 5 ...

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Alex Sanchez won a $12 500 prize that he deposited in an account paying 5.95% com- pounded

Question:

Alex Sanchez won a $12 500 prize that he deposited in an account paying 5.95% com- pounded semi-annually for 10 years. At the end of 10 years, he reinvested the balance into an that paid $500 at the beginning of each month starting with the date of reinvestment. If interest on the is 5.16% compounded monthly, for how long will Alex receive monthly payments?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...