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Nathan purchases a retirement annuity that will pay him $2,500 at the end of every six months for the first ten years and $800 at
Nathan purchases a retirement annuity that will pay him $2,500 at the end of every six months for the first ten years and $800 at the end of every month for the next four years. The annuity earns interest at a rate of 2.3% compounded quarterly.
a. What was the purchase price of the annuity? b. How much interest did Nathan receive from the annuity?
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