Kelsey purchases a retirement annuity that will pay her $1,500 at the end of every six months for the first ten years and $700 at the end of every month for the next six years. The annuity earns interest at a rate of 3.6 % compounded quarterly. Question 5 of 6 a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Kelsey receive from the annuity? Round to the nearest cent

Kelsey purchases a retirement annuity that will pay her $1,500 at the end of every six months for the first ten years and $700 at the end of every month for the next six years. The annuity earns interest at a rate of 3.6 % compounded quarterly. Question 5 of 6 a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Kelsey receive from the annuity? Round to the nearest cent

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Kelsey purchases a retirement annuity that will pay her $1,500 at the end of every six
months for the first ten years and $700 at the end of every month for the next six
years. The annuity earns interest at a rate of 3.6 % compounded quarterly.
Question 5 of 6
a. What was the purchase price of the annuity?
Round to the nearest cent
b. How much interest did Kelsey receive from the annuity?
Round to the nearest cent

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