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An annuity with a cash value of $11,300 pays $950 at the beginning of every three months. The investment earns 11% compounded quarterly. (a) How many payments will be paid? (b) What is the size of the final annuity payment? (a) The number of payments is (Round up to the nearest whole number.) D (b) The size of the final payment is $ (Round to the nearest cent as needed Round all intermediate values to six decimal places as needed.).

An annuity with a cash value of $11,300 pays $950 at the beginning of every three months. The investment earns 11% compounded quarterly. (a) How many payments will be paid? (b) What is the size of the final annuity payment? (a) The number of payments is (Round up to the nearest whole number.) D (b) The size of the final payment is $ (Round to the nearest cent as needed Round all intermediate values to six decimal places as needed.).

Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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K An annuity with a cash value of $11,300 pays $950 at the beginning of every three months. The investment earns 11% compounded quarterly. ▲ (a) How many payments will be paid? (b) What is the size of the final annuity payment? (a) The number of payments is (Round up to the nearest whole number.) (b) The size of the final payment is $ (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Transcribed Image Text:K An annuity with a cash value of $11,300 pays $950 at the beginning of every three months. The investment earns 11% compounded quarterly. ▲ (a) How many payments will be paid? (b) What is the size of the final annuity payment? (a) The number of payments is (Round up to the nearest whole number.) (b) The size of the final payment is $ (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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