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A Financial services Company sells a lifetime annuity to retirees. For a payment of $80,000 at age 65 , the firm will pay the retiree

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A Financial services Company sells a lifetime annuity to retirees. For a payment of $80,000 at age 65 , the firm will pay the retiree $700 a month until death. Actuarial data suggests that the post-retirement life expectancy is 25 years. 1. what is the monthly rate on this annuity? 2. What is the effective annual rate? What is the APR? 3. if the monthly interest rate is .75 percent, what monthly annuity payment can the firm offer to the retirees

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