Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $200,000 at...
70.2K
Verified Solution
Link Copied!
Question
Finance
Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $200,000 at age of 65, the firm will pay professor $1,500/month until death. If the professor's remaining life expectancy is 20 years, what is the monthly rate on this annuity? What is the effective annual rate? For the same initial payment of $200,000 at age of 65 and live for another 20 years, if the monthly rate is 0.5%, how much monthly payment the professor could receive?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.