Question
After completing a long and successful career as senior vice president for a large bank, you are preparing for retirement. After visiting the human resources
After completing a long and successful career as senior vice president for a large bank, you are preparing for retirement. After visiting the human resources office, you have found that you have several retirement options to choose from:
An immediate cash payment of $1.11 million.
Payment of $69,000 per year for life.
Payment of $59,000 per year for 4 years and then $79,000 per year for life (this option is intended to give you some protection against inflation).
You believe you can earn 7 percent on your investments and your remaining life expectancy is 8 years.
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