The rate of return offered by Reliance Insurance Co. on its 20-year annuities is 4.8% compounded monthly.

Question:

The rate of return offered by Reliance Insurance Co. on its 20-year annuities is 4.8% compounded monthly. What amount is required to purchase a 20-year with month-end payments of $1000?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...