# The amount of $27 350 is invested at 6% compounded monthly for 6 years. After the initial 6-year period, the balance in the fund is converted into an annuity due paying $1600 every 6 months. If interest on the annuity is 4.96% compounded semi-annually, what is the term of the annuity in years?

The amount of $27 350 is invested at 6% compounded monthly for 6 years. After the initial 6-year period, the balance in the fund is converted into an annuity due paying $1600 every 6 months. If interest on the annuity is 4.96% compounded semi-annually, what is the term of the annuity in years?

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,...

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,...

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**Related Book For**

## Contemporary Business Mathematics with Canadian Applications

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

ISBN: 978-0133052312