Shawn purchases a retirement annuity that will pay him $1,000 at the end of every six months for the first nine years and $300

Question

Shawn purchases a retirement annuity that will pay him $1,000 at the end of every six months for the first nine years and $300 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 Shawn receive from the annuity?

Kunduz · Accepted Answer

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