Annuity A requires payments of $150 per month for ten years, and at the end of ten years has a total balance of $21,000. Annuity B requires annual payments of $1,000 for twelve years and has a total balance of $16,000 at the end of the 12 year term. Annuity C requires monthly payments of $100 for

Annuity A requires payments of $150 per month for ten years, and at the end of ten years has a total balance of $21,000. Annuity B requires annual payments of $1,000 for twelve years and has a total balance of $16,000 at the end of the 12 year term. Annuity C requires monthly payments of $100 for

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Question

Consider the following annuities:

Annuity A requires payments of $150 per month for ten years, and at the end of ten years has a total balance of $21,000.
Annuity B requires annual payments of $1,000 for twelve years and has a total balance of $16,000 at the end of the 12 year term.
Annuity C requires monthly payments of $100 for thirty years, and at the end of the thirty-year term has a total balance of $41,000.

Which annuity paid out the most interest over its respective term?

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