A Man Received a Separation Payment of $98 000

question 51

Essay

A man received a separation payment of $98 000.00 at age 56. He invested that sum of money at 8.5% compounded semi-annually until he was 65. At that time he converted the existing balance into an ordinary annuity paying $6150.00 every 6 months, with interest at 5% compounded semi-annually. How many payments will be made?

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Definitions:

Behavioural Theory

A framework suggesting that learning is based on the idea that all behaviors are acquired through conditioning.

Ohio State University

A public research university located in Columbus, Ohio, known for its contributions to various fields of academia and research.

Leadership Behaviour

The actions and attitudes exhibited by individuals in leadership positions that influence the direction, performance, and culture of an organization.

House's Path-Goal Theory

A leadership theory that suggests leaders can affect the performance, satisfaction, and motivation of their followers by offering appropriate rewards for achieving goals.