An annuity providing a rate of return of 4.8% compounded monthly was purchased for $45,000. The annuity pays $400 at the end of each month.
a) How much of the 37^th payment will be interest?
b) What will be the principal portion of the 92^nd payment?
c) How much interest will be paid by Payments 85 to 96 inclusive?
d) How much principal will be repaid in the fifth year?
e) What will be the final payment?

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The Answer of An annuity providing a rate of return of 4.8% compounded monthly was purchased for $45,000. The annuity pays $400 at the end of each month. a) How much of the 37^th payment will be interest? b) What will be the principal portion of the 92^nd payment? c) How much interest will be paid by Payments 85 to 96 inclusive? d) How much principal will be repaid in the fifth year? e) What will be the final payment?

An Annuity Providing a Rate of Return of 4