Financial Math, question One: Ryan purchased an annuity that had an interest rate of 2.75% compounded semi-annually. It provided her with payments of $2,000 at the end of every month for 6 years. If the first withdrawal is to be made in 4 years and 1 month, how much did she pay for it? question two: Allison invested her savings in a bank at 4.25% compounded quarterly. How much money did she invest to enable withdrawals of $3,500 at the beginning of every 6 months from the investment for 6 years, if the first withdrawal is to be made in 12 years?
Financial Math, question One: Ryan purchased an annuity that had an interest rate of 2.75% compounded semi-annually. It provided her with payments of $2,000 at the end of every month for 6 years. If the first withdrawal is to be made in 4 years and 1 month, how much did she pay for it? question two: Allison invested her savings in a bank at 4.25% compounded quarterly. How much money did she invest to enable withdrawals of $3,500 at the beginning of every 6 months from the investment for 6 years, if the first withdrawal is to be made in 12 years?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Financial Math, question One: Ryan purchased an annuity that had an interest rate of
2.75% compounded semi-annually. It provided her with payments of $2,000 at the
end of every month for 6 years. If the first withdrawal is to be made in 4 years and 1
month, how much did she pay for it? question two: Allison invested her savings in a
bank at 4.25% compounded quarterly. How much money did she invest to enable
withdrawals of $3,500 at the beginning of every 6 months from the investment for 6
years, if the first withdrawal is to be made in 12 years?
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