Jennifer opted for the plan that will pay her $ 52,000 annually for 15 years. The cash will be paid at the end of each year Required A. Assuming that the interest will remain at 6.8 % constant over...

Jennifer opted for the plan that will pay her $ 52,000 annually for 15 years. The cash will be paid at the end of each year

Required

A. Assuming that the interest will remain at 6.8 % constant over the whole period , how much will the insurance company disburse at the end of the 15 years of annuity payment to Jennifer? [ordinary annuity]

B. If the payment of the cash flow is done in the beginning of the period , what will be the sum for the insurance company will disburse? [interest rate changes to 7.5%]

C. If Jennifer is supposed to invest a sum at the beginning of the retirement in the annuity fund of the insurance , calculate the sum she has to give to the company if

• Payment is received at the end of each period and the interest rate is 4.8%


•  Payment is done at the beginning of each period and the interest rate is 5.8%

[ Annual payment = $52,000 and period is 15 years]