A lump sum of $100,000 is placed into an investment annuity to make end-of-month payments for 20 years at 4% compounded
Posted: Thu Dec 23, 2021 9:00 am
A lump sum of $100,000 is placed into an investment annuity to
make end-of-month payments for 20 years at 4% compounded
semi-annually.
a. What is the size of the monthly payment?
b. Calculate the principal portion of the 203rd payment.
c. Calculate the interest portion of the 76th payment.
d. Calculate the total interest received in the fifth year.
e. Calculate the principal portion of the payments made in the
seventh year.
make end-of-month payments for 20 years at 4% compounded
semi-annually.
a. What is the size of the monthly payment?
b. Calculate the principal portion of the 203rd payment.
c. Calculate the interest portion of the 76th payment.
d. Calculate the total interest received in the fifth year.
e. Calculate the principal portion of the payments made in the
seventh year.