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Lucy purchases a retirement annuity that will pay her $2,000 at the end of every six months for the first twelve years and $800 at
Lucy purchases a retirement annuity that will pay her $2,000 at the end of every six months for the first twelve years and $800 at the end of every month for the next seven years. The annuity earns interest at a rate of 3.1% compounded quarterly.
a. What was the purchase price of the annuity?
Round to the nearest cent
b. How much interest did Lucy receive from the annuity?
Round to the nearest cent
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