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An annuity paying $1,400 at the end of each month (except for a smaller final payment) was purchased with $225,000 that had accumulated in
An annuity paying $1,400 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 5.2%. (Round your answers to 2 decimal places.) a. What amount of principal will be included in Payment 137? Principal 137526.8 b. What will be the interest portion of Payment 204? Interest 515.05 c. How much will the principal be reduced by Payments 145 to 156 inclusive? Principal paid $13499.77 d. How much interest will be paid in the twentieth year? Interest paid 3599.15 e. What will be the final payment? Final payment $ 62.89
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