A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides a semi-annually compounded rate of return of 5% and makes equal month-end payments.
a) What will be the principal portion of Payment 134?
b) What will be the interest portion of Payment 210?
c) How much will the loan's balance be reduced by Payments 75 to 100 inclusive?
d) How much interest will be paid in the sixth year?

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The Answer of A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides a semi-annually compounded rate of return of 5% and makes equal month-end payments.
a) What will be the principal portion of Payment 134?
b) What will be the interest portion of Payment 210?
c) How much will the loan's balance be reduced by Payments 75 to 100 inclusive?
d) How much interest will be paid in the sixth year?

A 20-Year Annuity Was Purchased with $180,000 That Had Accumulated