Can you please explain the process step-by-step? Do I need to use the effective rate first and then transfer it to the nominal rate to match the compounding periods( six-month annuity and the rate per annum)? Thanks

Your Manager has identified an annuity to purchase.
The annuity has the following characteristics:
	annuity payment	$77,000	each six month period
	number of period	11	year
	nominal rate	6.00%	for a year
	Annual fee each year	$300	at the beginning
If the cost of the annuity today is	$700,000	Would you recommend your manager that this is a good annuity (investment)? Why or why not?
Please justify your conclusion.						to