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At 60 Emily has just retired and has decided to purchase an annuity with some of her retirement savings.The interest rate from which the annuity
At 60 Emily has just retired and has decided to purchase an annuity with some of her retirement savings.The interest rate from which the annuity is calculated is 7%.She has $500,000 in her retirement account which is also providing annual interest of 7%.She wishes to have $50,000 left at age 90.What income replacement ratio can she obtain from this annuity if her final salary was $50,000?
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