Answer to Question #328942 in Financial Math for deep

Question

You are considering an annuity which would offer payments $ 5000 at the end of every three months for 20 years. Interest is compounded quarterly at a nominal rate of 8.8%. Which of the changes would increase the amount that you would pay for this annuity today?

a.

Compounding interest semi-annually instead of quarterly

b.

Compounding interest daily instead of quarterly

c.

Receiving payments for 19 years instead of 20 years

d.

Receiving payments of $ 4500 instead of $ 5000

e.

A nominal rate of 9.2% instead of 8.8%