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Annette has just inherited $180,000. She invests this money at a rate of return of 6.08% per year compounded quarterly. After some period of time,
Annette has just inherited $180,000. She invests this money at a rate of return of 6.08% per year compounded quarterly. After some period of time, she purchases an annuity that pays $2891 at the beginning of each month for 19 years. What monthly compounded rate of interest is equivalent to 6.08% compounded quarterly? How much must be in the account on the date of the first payment in order to pay for this annuity? Investing the $180,000 today, how many years until Annette can purchase her annuity? No units are required.
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