Can you please explain the process step-by-step? Do I need to use the effective rate first and
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Can you please explain the process step-by-step? Do I need to use the effective rate first and then transfer it to the nominal rate to match the compounding periods( six-month annuity and the rate per annum)? Thanks
Your Manager has identified an annuity to purchase. | ||||||||||
The annuity has the following characteristics: | ||||||||||
annuity payment | $77,000 | each six month period | ||||||||
number of period | 11 | year | ||||||||
nominal rate | 6.00% | for a year | ||||||||
Annual fee each year | $300 | at the beginning | ||||||||
If the cost of the annuity today is | $700,000 | Would you recommend your manager that this is a good annuity (investment)? Why or why not? | ||||||||
Please justify your conclusion. | to |
Related Book For
Campbell Biology
ISBN: 978-0321775658
10th edition
Authors: Jane B. Reece, Lisa A. Urry, Michael L. Cain, Steven A. Wasserman, Peter V. Minorsky, Robert B. Jackson
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