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Mary buys an annuity that pays an amount X at the end of each month for 3 years subject to a nominal annual interest rate
Mary buys an annuity that pays an amount X at the end of each month for 3 years subject to a nominal annual interest rate of 6% compounded monthly. The annuity costs Mary $36,000. As Mary receives each of the 36 annuity payments of X at the end of each month, she invests them right away in a savings account that pays a 12% nominal annual interest rate compounded monthly. How much is accumulated in Marys savings account at the end of the 3rd year right after last months interest has been applied?
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