Question
: Fadey is trying to decided between two different annuities. He wants to know which of the two annuities will require the lowest investment will
:
Fadey is trying to decided between two different annuities. He wants to know which of the two annuities will require the lowest investment will allow him to withdrawal $12,5000 every six months?
A) Annuity A will make the payments at the beginning of every six months for the next 9 years and the interest rate will be 5.20% compounded semi-annually.
End/Beg
P/Y
C/Y
N
I/Y
PV
PMT
FV
Fadey is trying to decided between two different annuities. He wants to know which of the two annuities will require the lowest investment will allow him to withdrawal $12,5000 every six months?
B) Annuity B will make the payments at the beginning of every six months for the next 9 years and the interest rate will be 5.20% compounded quarterly.
End/Beg
P/Y
C/Y
N
I/Y
PV
PMT
FV
Which annuity has the lowest investment for Fadey?
Please solve with BA II Plus Texas instrument calculator
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