A 25 year annuity was purchased with $225,000 that had accumulated in a Registered Retirement Savings Plan (RRSP) The annuity provides a semiannually compounded rate of return of 5 2 and makes equal month end payments a What amount of principal will be included in Payment 206 b What will be the int...

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A 25-year annuity was purchased with $225,000 that had accumulated in a Registered Retirement Savings Plan (RRSP).

Question:

A 25-year was purchased with $225,000 that had accumulated in a Registered Retirement Savings Plan (RRSP). The provides a semiannually compounded rate of return of 5.2% and makes equal month-end payments.
a. What amount of principal will be included in Payment 206?
b. What will be the interest portion of Payment 187?
c. How much will Payments 50 to 100 inclusive reduce the principal balance?
d. How much interest will be paid in the fourteenth year?
e. What will be the final payment? 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,...