A 20-year annuity is purchased for $400,000. What payment will it deliver at the end of each
Question:
a. 4% compounded quarterly?
b. 5% compounded quarterly?
c. 6% compounded quarterly?
d. 7% compounded quarterly? In each case, also calculate the total earnings distributed over the life of the annuity
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,...
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Given PV 400000 Term 20 years a With j 4 m 4 we have n ...View the full answer
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