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. As a financial planner, your client has just retired and is interested in purchasing a 30-year annuity that has a guaranteed monthly payment of

. As a financial planner, your client has just retired and is interested in purchasing a 30-year annuity that has a guaranteed monthly payment of $2,000. The interest rate for the annuity is 6%. Your client has saved $300,000 for this financial product. Can your client afford this annuity? Please explain.

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