TIPSThe first one is an immediate annuity with payment per term2000every 6 months for 5yrs. Second annuity is deferred annuity with pmt per term1500

With Balloon payment and drop payment

1. Edna invests $30,000 and buys an annuity that pays $2000 every 6 months (1 st payment 6 months from now) for 5 years, followed by $1500 every 6 months for as long as possible. The annuity earns interest at il) = 6% for the first 3 years, followed by () = 5% thereafter. (a) How many semi-annual payments will Sally get in total? (4 marks) (b) What would be the size of her final payment if it is made at the same time as his last regular $1500 payment? (2 marks) (c) What would be the size of her final payment if it is made 6 months after his last regular $1500 payment? (2 marks)