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An insurance agent is trying to sell you an immediate-retirement annuity, which for a single amount paid today will provide you with R12 000 at
An insurance agent is trying to sell you an immediate-retirement annuity, which for a single amount paid today will provide you with R12 000 at the end of each year for the next 25 years. You currently earn 9% on low-risk investments comparable to the retirement annuity. Calculate the most you would pay today.
1. R103 476.97
2. R108 629.85
3. R113 181.83
4. R117 870.96
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