Lisa purchased an annuity that had an interest rate of 3.00% compounded semi-annually. It provided her with payments of $2,500 at the end of every month for 7 years. If the first withdrawal is to be made in 4 years and 1 month, how much did she pay for it?

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A: Step 1:Step 2:

Q: Jenna purchases a retirement annuity that will pay her $1,000 at the end of every six months for the…

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Q: Jane receives payments of X at the beginning of each year forever. The present value of her annuity…

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Q: Calculate the total interest earned on the investment.

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A: Interest is the cost of borrowing the money.

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A: Annuity means series of no. of finite payments which are same in size and made in equal intervals.…

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A: Sinking fund: It is a fund maintained by a company in which only interest payments are made during…

Q: What is the amount of each payment?

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Q: Find the total value of the annuity at the end of the 2nd year.

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A: The future value is the future worth of the amount that will be paid or received in the future.

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A: Inputs Borrowing Amount or Loan Amount = 5000

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.