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Each question is worth 5 points Tiffany is 22 years old. She expects to retire at the age of 62. The average life expectancy of
Each question is worth 5 points
- Tiffany is 22 years old. She expects to retire at the age of 62. The average life expectancy of an American woman is 87 years old; and Tiffany believes that it is also her life expectancy. Tiffany would like a pension income of $3000 at the end of each month after retirement. Suppose that the annual interest rate is 6%. How much should Tiffany save at the end of each month until retirement?
- Forever life insurance is selling a perpetuity contract that pays $1,000 monthly. The contract currently sells for $20,000. What is the effective annual return on this investment.
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