Ann was offered an annuity of $20,000 a year for the rest of her life. She was

Question:

Ann was offered an annuity of $20,000 a year for the rest of her life. She was 55 at the time, and her life expectancy was 84. The investment would cost her $180,000. What would the return on her investment be?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...