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Assume that upon the death of her of husband, Susan can receive a $1,000,000 death benefit from his life insurance policy or she can receive
Assume that upon the death of her of husband, Susan can receive a $1,000,000 death benefit from his life insurance policy or she can receive a payment of $5,750 at the beginning of each month for the next 15 years until Susans actuarially expected death. Susan wants to know if she invests the $1,000,000 lump-sum at an annual rate of 7.5% and takes a $10,000 payment at the beginning of each month, in how many months will the $10,000 payment stop?
A. 153 months B. 156 months C. 158 months D. 161 months
Please show financial calulator keystrokes
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