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Hayat Sigorta is offering a lifetime annuity product for its retired clients. If a client pays $71,000 at age 65, Hayat Sigorta will pay him/her
Hayat Sigorta is offering a lifetime annuity product for its retired clients. If a client pays $71,000 at age 65, Hayat Sigorta will pay him/her $375 each month until death. a. Assume Burcu accepts the offer that Hayat Sigorta provides and signs the contract at age 65. She expects to live 20 years. Calculate the annuity's monthly interest rate. (Intermediate computations should not be rounded. Enter your answer in percentages with two decimal places.) Monthly rate on annuity % b. Calculate the effective annual interest rate (EAR). (Intermediate computations should not be rounded. Enter your answer in percentages with two decimal places.) Effective annual rate % c. What monthly annuity payment may Hayat Sigorta provide Burcu if the monthly interest rate is 0.75percent? (Intermediate computations should not be rounded. Enter your answer in percentages with two decimal places.) Monthly annuity payment
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