23 Samuel Hardy received $48,650 as a severance settlement when his position was terminated. Harvey had just celebrated his 41st birthday. He immediately and prudently invested the money in an account paying a guaranteed 9.6% compounded semi-annually until his 60th birthday last year. At that time, he converted the existing balance into an ordinary annuity paying $3,750 per month with interest at 10% compounded monthly. For how long will the annuity run until all the funds have been paid out?
23 Samuel Hardy received $48,650 as a severance settlement when his position was terminated. Harvey had just celebrated his 41st birthday. He immediately and prudently invested the money in an account paying a guaranteed 9.6% compounded semi-annually until his 60th birthday last year. At that time, he converted the existing balance into an ordinary annuity paying $3,750 per month with interest at 10% compounded monthly. For how long will the annuity run until all the funds have been paid out?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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