You purchase an annuity from an insurance company for $850,000. The insurance company guarantees to...
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You purchase an annuity from an insurance company for $850,000. The insurance company guarantees to give you a monthly income of $6,250 for as long as you live. The insurance company estimates the life expectancy of your age cohort to be 18 years. What is the monthly rate of return that the insurance company pays to the investors?
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