An annuity providing a rate of return of 4.8% compounded monthly was purchased for $45,000. The annuity
Question:
a. How much of Payment 37 will be interest?
b. What will be the principal portion of Payment 92?
c. How much interest will be paid by Payments 85 to 96 inclusive?
d. How much principal will be repaid in the fifth year?
e. What will be the amount of 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,...
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Given PV 45000 i 48 12 04 PMT 400 a Interest in Payment 37 i Bal...View the full answer
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Somshukla Chakraborty
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