Question
A local university offers a lifetime annuity to retiring professors. For a payment of $200,000 at age 65, they will pay the retiring professor $1,000
A local university offers a lifetime annuity to retiring professors.
For a payment of $200,000 at age 65, they will pay the retiring professor $1,000 a month until death.
If the professors remaining life expectancy is 25 years, what is the monthly rate on this annuity?
What is the effective annual rate?
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Healthcare Financial Management Applied Concepts And Practical Analyses
Authors: Cassandra R. Henson
1st Edition
0826144748, 978-0826144744
