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Part 1 (2 pts): Calculate the Total Principle of an annuity into which you pay $ 500.00 per month at an annual interest rate of
Part 1 (2 pts): Calculate the Total Principle of an annuity into which you pay $ 500.00 per month at an annual interest rate of 3.441% interest compounded annually after 20 years.
Part 2 (4 pts): Calculate the Total Value of an annuity into which you pay $ 500.00 per month at an annual interest rate of 3.441% interest compounded annually after 20 years.
Part 3 (6 pts): Use Part 1) to calculate the Interest Rate needed on a single investment of equivalent principle so that it earns the same Total Value at the end of 20 years.
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