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:

Longer Delivery Time

An extended duration of labor or the process of childbirth, which may increase the risk for complications for both the mother and the infant.

First Stage

The initial phase or beginning of a process, event, or development.

Childbirth

The process of delivering a baby from the mother's uterus to the outside world.

Labor

The physical and mental efforts employed in economic production or service activities, often referring to both the workforce and the process of childbirth.