Question
Catherine purchases a retirement annuity that will pay her $2,000 at the end of every six months for the first eleven years and $700 at
Catherine purchases a retirement annuity that will pay her $2,000 at the end of every six months for the first eleven years and $700 at the end of every month for the next five years. The annuity earns interest at a rate of 4.8% compounded quarterly.
a. What was the purchase price of the annuity?
b. How much interest did Catherine receive from the annuity?
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How To Understand Business Finance
Authors: Bob Cinnamon, Brian Helweg-Larsen
2nd Edition
0749460202, 978-0749460204
