Satwinder deposited $145 at the end of each month for 15 years at 7.5% compounded monthly. After her last deposit she converted the balance into an ordinary annuity paying $1200 every 3 months for 12 years. If interest on the annuity is compounded semi-annually, what is the nominal rate of interest paid by the annuity?

Satwinder deposited $145 at the end of each month for

Satwinder deposited $145 at the end of each month for 15 years at 7.5% compounded monthly. After her last deposit she converted the balance into an ordinary paying $1200 every 3 months for 12 years. If interest on the is compounded semi-annually, what is the nominal rate of interest paid by the

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,...