Fred asked two life insurance companies to give quotes on a 20-year deferred annuity (after a 5-year

Question:

Fred asked two life insurance companies to give quotes on a 20-year deferred annuity (after a 5-year deferral period) that can be purchased for $100,000. Northwest Mutual quoted payments of $875 payable at the end of each month. Liberty Standard stated that all their annuity options provide a rate of return equal to 5.5% compounded annually. Which company should Fred choose?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: