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Question 4 [8 points] Cedric recently inherited $144,000 and used it to purchase an annuity that will pay him $2,000 every month. The annuity earns
Question 4 [8 points] Cedric recently inherited $144,000 and used it to purchase an annuity that will pay him $2,000 every month. The annuity earns 9.75% interest compounded monthly Answer the following questions For full marks your answer should be rounded to the nearest cent. a) How long will the annuity last? Your answer should be rounded to the appropriate whole period 0 years, 0 months b) What is the amount of the final payment? Final Payment = $ 0.00 c) What is the principal component of the final Principal = $ 0.00 payments? d) What is the interest component of the final 6 payments? Interest = $ 0.00
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