Abel purchased a 10-year annuity that has an interest rate of 5% compounded semiannually and which will
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Question:
Abel purchased a 10-year annuity that has an interest rate of 5% compounded semiannually and which will provide him with payments at the end of every six months.
The first payment received is $1000 and it increased by 2% thereafter, every six months.
(i) How much did he pay for annuity?
(ii) What was the total interest earned?
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