Question: An elderly couple is considering purchasing an annuity to provide guaranteed income for their retirement. Their personal financial advisor offers to sell them an annuity

An elderly couple is considering purchasing an annuity to provide guaranteed income for their retirement. Their personal financial advisor offers to sell them an annuity that will pay $63,000 per year to cover their living expenses for the next 15 years. If they only expect a 5% return on their money, how much should they be willing to pay for this annuity investment?

An astute IWU MBA graduate is considering refinancing their student loans. A special rate of 3.46% is available. The graduate would make monthly payments for the next 10 years. If the student owes $25,000, what will be their payment amount?

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