An annuity providing a rate of return of 5.6% compounded quarterly was purchased for $25,000. The annuity

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An annuity providing a rate of return of 5.6% compounded quarterly was purchased for $25,000. The annuity pays $800 at the end of each quarter (except for a smaller, final payment).

a. How much of the 16th payment is interest?

b. What is the principal portion of the 33rd payment?

c. What is the total interest in Payments 20 to 25 inclusive?

d. How much will the principal be reduced by payments in the sixth year?

e. What will be the final payment?

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Fundamentals Of Business Mathematics In Canada

ISBN: 9781259370151

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Authors: F. Ernest Jerome, Jackie Shemko

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Question Posted: Oct 21, 2020 04:26 AM

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