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A 25-year annuity was purchased with $225,000 that had accumulated in a RRSP. The annuity provides a semiannually compounded rate of return of 9.5% and makes equal

A 25-year annuity was purchased with $225,000 that had accumulated in a RRSP. The annuity provides a semiannually compounded rate of return of 9.5% and makes equal

  1. A 25-year annuity was purchased with $225,000 that had accumulated in a RRSP.  The annuity provides a semiannually compounded rate of return of 9.5% and makes equal month-end payments.

 

    1. What amount of principal will be included in Payment 206?
    2. What will be the interest portion of Payment 187?
    3. How much will the principal be reduced by Payments 50 to 100 inclusive?
    4. How much interest will be paid in the 14th year?
    5. What will be the amount of the final payment?
 
manish jayant 09-Sep-2020

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