David Jones has paid $16 000 for a retirement annuity from which he will receive $1375 at

Question:

David Jones has paid $16 000 for a retirement from which he will receive $1375 at the end of every 3 months. The payments are deferred for 10 years and interest is 10% compounded quarterly.
(a) How many payments will David receive?
(b) What is the size of the final payment?
(c) How much will David receive in total?
(d) How much of what he receives will be interest?
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,...