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?

Q: how long in years and months will she receive the payments

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Q: Calculate the total interest earned on the investment.

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A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

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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.