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Professor s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $ 1 8 0 , 0 0 0 at age

Professors Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $180,000 at age 65, the firm will pay the retiring professor $1000 a month until death. If the professors remaining life expectancy is 30 years. What is the effective annual rate (EAR)?

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