Paige purchases a retirement annuity that will pay her $2,000 at the end of every six...

 

Transcribed Image Text:

Paige purchases a retirement annuity that will pay her $2,000 at the end of every six months for the first twelve years and $200 at the end of every month for the next five years. The annuity earns interest at a rate of 5.9% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Paige receive from the annuity? Paige purchases a retirement annuity that will pay her $2,000 at the end of every six months for the first twelve years and $200 at the end of every month for the next five years. The annuity earns interest at a rate of 5.9% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Paige receive from the annuity?