Problem #1: $10,000 is used to purchase an appropriate size annuity that has level annual payments for 15 years. The pri

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Problem 1 10 000 Is Used To Purchase An Appropriate Size Annuity That Has Level Annual Payments For 15 Years The Pri 1 (49.87 KiB) Viewed 52 times

Problem #1: $10,000 is used to purchase an appropriate size annuity that has level annual payments for 15 years. The price of the annuity is based on an effective annual rate of 9.2%. As each payment is received, it is put into a fund that earns an effective annual rate of 4%. (a) Determine the accumulated value of the investment at the end of 15 years. (b) If the $10,000 were put into a fund that was to produce the same final value after 15 years, what annual effective rate would that fund have to offer? Problem #1(a): Answer correct to 2 decimals. Problem #1(b): Answer as a percentage, correct to 2 decimals. (Do not include the % sign in your answer.) Just Save Submit Problem #1 for Grading