What is the fair market value for a retirement annuity

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Question 1. What is the fair market value for a retirement annuity that would provide $3000 at the end of each month at 5% compounded quarterly for the first 10 years and $3000 at the end of each month at 6% compounded quarterly for the following 5 years?

Question 2. You want to invest in 15-year annuity that will pay you $3,600 per quarter for the first 7 years and $2,500 per month for the last 8 years. If the annuity earns 8.5% compounded annually for the first 7 years and 7.5% compounded semi-annually for the remaining 8 years, what would be the amount of your initial investment?

Reference no: EM132601898

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