Catherine purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first ten years and $600 at the end of every month for the next six years. The annuity earns interest at a rate of 2.8% compounded quarterly.

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Catherine purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first ten years and $600 at the end of every month for the next six years. The annuity earns interest at a rate of 2.8% compounded quarterly.

a). What was the purchase price of the annuity?

b). How much interest did Catherine receive from the annuity?

business math

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Catherine purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first ten years and $600 at the end of every month for the next six years. The annuity earns interest at a rate of 2.8% compounded quarterly.

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Catherine purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first ten years and $600 at the end of every month for the next six years. The annuity earns interest at a rate of 2.8% compounded quarterly.

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Catherine purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first ten years and $600 at the end of every month for the next six years. The annuity earns interest at a rate of 2.8% compounded quarterly.