1.
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS
A person substitutes a total insurance policy of $300,000.00 for an annuity, with the condition that it will be paid to him or his heirs for 25 years. If the insurance company operates at 7¼% interest, find the value of the annuity, the amount of total interest, and the effective rate.
Note:
In the image, this is the original exercise, it is in Spanish, but it is easy to understand.
Very important Note:
It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
Extracted text: Una persona sustituye un seguro total de $300,000.00 por una renta anual, con la condición de que se le pague a él o a sus herederos durante 25 años. Si la compañía de seguros opera con el 7%% de interés, hallar el valor de la renta anual (anualidad), el monto de los intereses totales y la tasa efectiva.