The Sum of $59 760

question 66

Essay

The sum of $59 760.00 is invested at 9.5% compounded monthly for four years. After the four years, the balance in the fund is converted into an annuity due paying annually $15 240.00. If interest on the annuity is 9.57% compounded annually, what is the term of the annuity?

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Definitions:

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Law Of Effect

The principle that behaviour followed by pleasant consequences is likely to be repeated; behaviour followed by unpleasant consequences is not.

Behaviour

Refers to the actions or reactions of an object or organism, often in relation to the environment or stimuli.

Pleasant Outcomes

The positive results or benefits achieved from a specific action, decision, or event.