Question
2. Mr. and Mrs. Rich are interested in purchasing an annuity that will pay them $2,500.00 per month starting next month for 25 years. If
2. Mr. and Mrs. Rich are interested in purchasing an annuity that will pay them $2,500.00 per month starting next month for 25 years. If the best rate of return that they could get is 4.65% compounded semi-annually, calculate using both the algebraic and the calculator method,
a) how much should they pay now for this annuity? (6 marks)
| P/Y | C/Y | N | I/Y | PV | PMT | FV |
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b) Calculate the total interest paid over the term of the annuity. (3 marks)
| P/Y | C/Y | N | I/Y | PV | PMT | FV |
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Financial Markets And Technical Analysis
Authors: Eric Majors
1st Edition
1495333574, 978-1495333576
