Question
Jonathan purchases a retirement annuity that will pay him $1,000 at the end of every six months for the first eleven years and $900 at
Jonathan purchases a retirement annuity that will pay him $1,000 at the end of every six months for the first eleven years and $900 at the end of every month for the next five years. The annuity earns interest at a rate of 4.5% compounded quarterly.
a. What was the purchase price of the annuity?
Round to the nearest cent
b. How much interest did Jonathan receive from the annuity?
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Understanding The Finance Of Welfare
Authors: Howard Glennerster
2nd Edition
1847421091, 978-1847421098
