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Compute the purchase price of the annuity

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Reference no: EM133205275

Li Jun purchases a retirement annuity that will pay her $1,500 at the end of every six months for the first nine years and $600 at the end of every month for the next six years. The annuity earns interest at a rate of 4.6% compounded quarterly.

a. What was the purchase price of the annuity?

b. How much interest did Li Jun receive from the annuity?

Reference no: EM133205275

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