The question below is one that I cannot seem to figure. Any helpwould be much ap
ID: 2633029 • Letter: T
Question
The question below is one that I cannot seem to figure. Any helpwould be much appreciated.
Prof Annuity Corp offers a lifetime annuity to retiring professors.For a payment of $80,000 at age 65, the firm will the pay retiringprofessor $600 a month til death
a. If the professor's remaining life expectancy is 20 years, what is the effective annual rate? What is the monthly rate on Annuity?
b. if the monthly interest rate is 0.5%, what monthly annuity payment can the firm offer to the retiring professor?
Thank you for your help!
Explanation / Answer
1
Let the effective monthly rate be
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.