The sum of $159,760 is invested at 5.5% compounded monthly for four years. After the four years, the balance in the fund is converted into an ordinary annuity paying $10,240 annually. If interest on the annuity is the same, what is the term of the annuity? Select one: O a. 13.49 years O b. 10.21 years O c. 17.69 years O d. 11.34 years O e. 9.62 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
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The sum of $159,760 is invested at 5.5% compounded monthly for four
years. After the four years, the balance in the fund is converted into an
ordinary annuity paying $10,240 annually. If interest on the annuity is the
same, what is the term of the annuity?
Select one:
O a. 13.49 years
b. 10.21 years
С.
17.69 years
d. 11.34 years
e.
9.62 years
Transcribed Image Text:The sum of $159,760 is invested at 5.5% compounded monthly for four years. After the four years, the balance in the fund is converted into an ordinary annuity paying $10,240 annually. If interest on the annuity is the same, what is the term of the annuity? Select one: O a. 13.49 years b. 10.21 years С. 17.69 years d. 11.34 years e. 9.62 years
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