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2. Mr. and Mrs. Rich are interested in purchasing an annuity that will pay them $2,500.00...

2. Mr. and Mrs. Rich are interested in purchasing an annuity that will pay them $2,500.00 per month starting next month for 25 years. If the best rate of return that they could get is 4.65% compounded semi-annually, calculate using both the algebraic and the calculator method,

a) how much should they pay now for this annuity?

P/Y   

C/Y   

N   

I/Y

PV   

PMT

FV

b) Calculate the total interest paid over the term of the annuity.

P/Y

C/Y

N   

I/Y

PV

PMT   

FV   
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