Suppose a couple have $100,000 at retirement that they can invest in an ordinary annuity that earns 7 8 , compounded monthly Track the balance in this annuity account until it reaches $0, if the couple receives the following monthly payments (a) $1000 (b) $2500 ...

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Suppose a couple have $100,000 at retirement that they can invest in an ordinary annuity that earns

Question:

Suppose a couple have $100,000 at retirement that they can invest in an ordinary that earns 7.8%, compounded monthly. Track the balance in this account until it reaches $0, if the couple receives the following monthly payments.
(a) $1000
(b) $2500
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,...