Question
Luka is curious to know how much his pension is worth that will pay him $2,100 a month. He has just retired at the age
Luka is curious to know how much his pension is worth that will pay him $2,100 a month. He has just retired at the age of 65. Use the above table to find out how much his pension is worth if he has the average life expectancy. Assume a risk-free, inflation-adjusted annual rate of 2.5%; also assume that he has no dependents or spouse so these extra payments will not occur when he is dead.
Luke is 65
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Well, Luka made it to his 80th birthday so how much is his pension worth now?
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Lets suppose that Luka makes it to his 110th birthday. How much is his pension worth?
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