hs for the first nine years and $700 at the end of every month for t .The annuity earns interest at a rate of 4.1% compounded quarter hat was the purchase price of the annuity? $0.00 d to the nearest cent ow much interest did Sarah receive from the annuity?

hs for the first nine years and $700 at the end of every month for t .The annuity earns interest at a rate of 4.1% compounded quarter hat was the purchase price of the annuity? $0.00 d to the nearest cent ow much interest did Sarah receive from the annuity?

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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Question

Sarah purchases a retirement annuity that will pay her $2,500 at the end of every six
months for the first nine years and $700 at the end of every month for the next five
years. The annuity earns interest at a rate of 4.1% compounded quarterly.
4
a. What was the purchase price of the annuity?
$0.00
Round to the nearest cent
b. How much interest did Sarah receive from the annuity?
Round to the nearest cent

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