Question
Sarah purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first nine years and $800 at
Sarah purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first nine years and $800 at the end of every month for the next five years. The annuity earns interest at a rate of 6% compounded quarterly.
a. What was the purchase price of the annuity?
b. How much interest did Sarah receive from the annuity?
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Globalization Gating And Risk Finance
Authors: Unurjargal Nyambuu, Charles S. Tapiero
1st Edition
1119252652, 978-1119252658
