Emi decides to invest a $300 000 inheritance into an annuity.
Let
A recurrence relation that can model the value of this balance from month to month is
- Showing recursive calculations, determine the balance of the annuity after two months. Round your answer to the nearest cent. (1 mark)
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- For how many years will Emi receive the regular payment? (1 mark)
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- Calculate the annual compound interest rate for this annuity. (1 mark)
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- If Emi wanted the annuity to act as a perpetuity, what monthly payment, in dollars, would she receive? (1 mark)
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