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Your grandmother bought an annuity from Great-West Life Insurance Company for $439,002 when she retired. In exchange for the $439,002, Great-West will pay her $40,000
Your grandmother bought an annuity from Great-West Life Insurance Company for $439,002 when she retired. In exchange for the $439,002, Great-West will pay her $40,000 per year until she dies. The interest rate is 6%. How long must she live after the day she retired to come out ahead (that is, to get more in value than what she paid in)
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