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Veronica funded a life annuity through installment payments. At age 60, she decided to elect an annuity settlement option and to begin to receive payments.

Veronica funded a life annuity through installment payments. At age 60, she decided to elect an annuity settlement option and to begin to receive payments. Which of the following annuity payout options will provide Veronica with the highest monthly income?

1. life annuity (no refund)

2. life income with payments guaranteed for 5 years

3. life income with payments guaranteed for 10 years

4. installment refund annuity

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