An annuity with a cash value of $12,000 pays $1,690 at the beginning of every six months. The investment earns 5%compounded semi-annually.(a) How many payments will be paid?(b) What is the size of the final annuity payment?points possidic(a) The number of payments is(Round up to the nearest whole number.)(b) The size of the final payment is $.(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Given in the question: Annuity Cash Value $12,000 Payment at the beginning of every six…

Answered: (a) How many payments will be paid? (b)…

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(a) How many payments will be paid? (b) What is the size of the final annuity payment?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An annuity with a cash value of $12,000 pays $1,690 at the beginning of every six months. The investment earns 5%
compounded semi-annually.
(a) How many payments will be paid?
(b) What is the size of the final annuity payment?
points possidic
(a) The number of payments is
(Round up to the nearest whole number.)
(b) The size of the final payment is $.
(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

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