Question
Your grandmother bought an annuity from Rock Solid Life Insurance Company for $260,000 when she retired. In exchange for the $260,000, Rock Solid will pay
Your grandmother bought an annuity from Rock Solid Life Insurance Company for $260,000
when she retired. In exchange for the $260,000,
Rock Solid will pay her $ 30,000
per year until she dies. The interest rate is 4%.
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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Recent Advances In Computational Finance
Authors: Nikolaos S. Thomaidis, Jr. Dash, Gordon H.
1st Edition
1626181233, 978-1626181236
