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a) Johnathan wishes to purchase a 25-year annuity providing beginning-of-month payments of $1200 for the first 10 years, and $1500 for the remaining 15 years.

a) Johnathan wishes to purchase a 25-year annuity providing beginning-of-month payments of $1200 for the first 10 years, and $1500 for the remaining 15 years. An insurance company has quoted him a rate of return of 4.3% compounded quarterly for such an annuity. How much will he pay for the annuity? b) How much interest is made during this annuity?

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