An annuity paying $1400 at the end of each month (except for a smaller final payment) was

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An annuity paying $1400 at the end of each month (except for a smaller final payment) was purchased with $225,000 that had accumulated in an RRSP. The annuity provides a semiannually compounded rate of return of 3.2%.

a. What amount of principal will be included in Payment 137?

b. What will be the interest portion of Payment 204?

c. How much will the principal be reduced by Payments 145 to 156 inclusive?

d. How much interest will be paid in the 15th year?

e. What will be the final payment?

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Fundamentals Of Business Mathematics In Canada

ISBN: 9781259370151

3rd Edition

Authors: F. Ernest Jerome, Jackie Shemko

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Question Posted: Oct 21, 2020 04:26 AM

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An annuity paying $1400 at the end of each month (except for a smaller final payment) was

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Fundamentals Of Business Mathematics In Canada

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