Shane purchases a retirement annuity that will pay him $1,500 at the end of every six...

 

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Shane purchases a retirement annuity that will pay him $1,500 at the end of every six months for the first ten years and $600 at the end of every month for the next six years. The annuity earns interest at a rate of 4.3% compounded quarterly. a. What was the purchase price of the annuity? $0.00 Round to the nearest cent b. How much interest did Shane receive from the annuity? $0.00 Round to the nearest cent Shane purchases a retirement annuity that will pay him $1,500 at the end of every six months for the first ten years and $600 at the end of every month for the next six years. The annuity earns interest at a rate of 4.3% compounded quarterly. a. What was the purchase price of the annuity? $0.00 Round to the nearest cent b. How much interest did Shane receive from the annuity? $0.00 Round to the nearest cent

Answer rating: 100% (QA)

To calculate the purchase price of the annuity we need to find the present value of all the cash flo... View the full answer