Emma decides to purchase a ten year annuity that would provide her with $5,000 annual payments for the first six years and $3,000 annual payments for the last four years. How much should Emma pay for the annuity if the interest rate on the annuity is 3.5% compounded quarterly?

Answer rating: 100% (QA)

To calculate the present value of the annuity you can use the formula for the present value of an an... View the full answer