Question

Robert purchases a retirement annuity that will pay him $1,500 at the end of every six months for the first twelve years and $500 at the end of every month for the next six years. The annuity earns interest at a rate of 3% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Robert receive from the annuity? Round to the nearest cent

Answer 1

A. The purchase price of the annuity was $20,464.22.

B. William received $19,880.02 in interest from the annuity.

Step-by-step explanation: