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10.0p b Diego prepared for this retirement by saving the same amount each month for forty years, and tomorrow he will retire. His pension savings

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10.0p b Diego prepared for this retirement by saving the same amount each month for forty years, and tomorrow he will retire. His pension savings account has a total value of 250,000, and he will use this money to buy a lifelong annuity. More specifically, Diego will use the pension savings account to buy a product that pays a constant pension benefit b as long as he is alive. While saving for his pension, Diego expected that insurance companies use an interest rate of 3% to compute the present value of annuities, but it turns out that insurance company Lifelong uses an interest rate of 2% to compute the present value of annuities. For Diego, the value of a lifelong annuity equals 17.5 if one assumes an interest rate of 3%, and it equals 19.5 if an interest rate of 2% is used. What is the pension benefit b that Diego can purchase at insurance company Lifelong from his pension savings account? 4a 4b 46 4d 5a 5b 7h ok

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