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15. Text Problem 5-22: Nick Johnson is nearing retirement and has a nest egg in his 401(k). He recently consulted with an insurance agent about
15. Text Problem 5-22: Nick Johnson is nearing retirement and has a nest egg in his 401(k). He recently consulted with an insurance agent about using some of his savings to purchase an annuity. He will give the insurance company a lump sum of money, after which he will receive income in a guaranteed, fixed yearly amount. (The amount is exactly the same every year and does not fluctuate). The insurance agent prepared three annuity choices. No. of Years of Income Provided Annuity . Initial Payment (Purchase Amt.) $ 50,000 $ 60,000 $ 70,000 Yearly Income Received $ 8,500 $ 7,000 $ 8,000 12 B 25 20 Nick currently earns 11.00% on his savings. Should he withdraw a portion to invest in one or more of the annuities
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