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10. Insurance annuity (Immediate). An insurance company offers an immediate annuity to one of your clients, where he will get monthly payments of $1600 for
10. Insurance annuity (Immediate). An insurance company offers an immediate annuity to one of your clients, where he will get monthly payments of $1600 for as long as he lives at the cost of $258,244.00. a) What is the implied rate of return if your client were to live for 20 years? b) Is it a good deal? (Note: tricky question)
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