Rosa has a annuity worth $20, 000 to help pay for expenses while they are in a year-long (12-month) masters program. The annuity earns 5.4 % compounded monthly. Using the present value annuity formula, they find the will receive $1708 monthly during this time, sent to them at the start of the month. Fill in the table to track how much money remains in the annuity after each month. Round answers to 2 decimal places and use rounded answers in subsequent calculations. Time (Months) 0 1 2 Balance at start of month (after payment) $ $ $ Interest Earned during Time Period $ $ $ Balance at end of month $ 20,000 $ $ $
Rosa has a annuity worth $20, 000 to help pay for expenses while they are in a year-long (12-month) masters program. The annuity earns 5.4 % compounded monthly. Using the present value annuity formula, they find the will receive $1708 monthly during this time, sent to them at the start of the month. Fill in the table to track how much money remains in the annuity after each month. Round answers to 2 decimal places and use rounded answers in subsequent calculations. Time (Months) 0 1 2 Balance at start of month (after payment) $ $ $ Interest Earned during Time Period $ $ $ Balance at end of month $ 20,000 $ $ $
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Transcribed Image Text:Rosa has a annuity worth $20, 000 to help pay for expenses while they are in a year-long (12-month) masters
program. The annuity earns 5.4 % compounded monthly. Using the present value annuity formula, they find
the will receive $1708 monthly during this time, sent to them at the start of the month.
Fill in the table to track how much money remains in the annuity after each month. Round answers to 2
decimal places and use rounded answers in subsequent calculations.
Time
(Months)
0
2
3
Balance at start of
month (after payment)
$
$
$
Interest Earned during
Time Period
$
s
$
Balance at end of
month
$ 20,000
$
$
$
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