To save for retirement, Karla Harby put $325 each month into an ordinary annuity for 12 years. Interest was compounded monthly. At the end of the 12 years, the annuity was worth $76,850 What annual interest rate did she receive? The interest rate she received was approximately %. (Round to two decimal places as needed.)

To save for retirement, Karla Harby put $325 each month into an ordinary annuity for 12 years. Interest was compounded monthly. At the end of the 12 years, the annuity was worth $76,850 What annual interest rate did she receive? The interest rate she received was approximately %. (Round to two decimal places as needed.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

See similar textbooks

Similar questions

To save for retirement, Milagro put $300 each month into an ordinary annuity for 20 years. Interest was compounded monthly. At the end of the 20 years, the annuity was worth $147,126. What annual interest rate did she receive?
Harleen has deposited $125 at the end of each month for 13 years at 4.68% compounded monthly. After her last deposit she converted the balance into an ordinary annuity paying $890 every three months for nine years. What is the nominal annual rate of interest, compounded quarterly, paid by the annuity?
A woman makes $200 contributions at the end of each month to a retirement account for a period of 10 years. For the next 20 years, she makes no additional contributions and no withdrawals.(a) If the account earns 5% interest, compounded monthly, find the value of the account after the 30 years.(b) If this account is used to set up an annuity that pays her an amount at the beginning of each 6-month period for the next 30 years, how much will each payment be?
Eugene began to save for his retirement at age 30, and for 11 years he put $ 275 per month into an ordinary annuity at an annual interest rate of 7% compounded monthly. After the 11 years, Eugene was unable to make the monthly contribution of $ 275, so he moved the money from the annuity into another account that earned 11% interest compounded monthly. He left the money in this account for 24 years until he was ready to retire. How much money did he have for retirement?
At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8% compounded annually. How much is in the account today? How much would be in the account if the deposits were made at the beginning of each year (PMT Type) than at the end of each year? (Use Future Value of an Annuity