SOLUTION: 7. Mr. Singh’s life savings total $ 420000. He plans to use this money to purchase an annuity earning interest at 5.83 % compounded semi-annually. This will provide him with equa

SOLUTION: 7. Mr. Singh’s life savings total $ 420000. He plans to use this money to purchase an annuity earning interest at 5.83 % compounded semi-annually. This will provide him with equa

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Question 1194796: 7. Mr. Singh’s life savings total $ 420000. He plans to use this money to purchase an annuity earning interest at 5.83 % compounded semi-annually. This will provide him with equal semi-annual payments for 25 years. How much is each semi-annual payment?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
Total amount= Payment (1-(1+(r/n))-nt) divided by (r/n). Round at end
420000=P (1-1+(0.0583/2))^(-50)))/0.02915
12243=P(0.76227)
$16060.61
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