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Joshua Deposited $3560

question 49

Essay

Joshua deposited $3560.00 at the beginning of every 6 months for 11 years into a fund paying 3.5% compounded semi-annually. Fourteen years after the first deposit he converted the then existing balance into an annuity due paying him equal annual payments for 22 years. If interest for the annuity due is 5% compounded annually, what is the size of the annual payment?

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Definitions:

Gonad

A reproductive gland that produces gametes (sperm in males and eggs in females) and sex hormones, such as testes in males and ovaries in females.

Chromosomes

Chromosomes are long strands of DNA and proteins found in the nucleus of most living cells, carrying genetic information in the form of genes.

Sperm

Male reproductive cells or gametes in sexually reproducing organisms, containing genetic information to fertilize the female ovum.

Egg

An organic vessel containing the zygote in which an embryo develops until it can survive on its own, also a common food source rich in nutrients.

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