A 65-year-old male can purchase either of the following annuities from a life insurance company for $50,000.

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A 65-year-old male can purchase either of the following annuities from a life insurance company for $50,000. A 25-year term annuity will pay $307 at the end of each month. A life annuity will pay $408 at the end of every month until the death of the annuitant. To what age must the man survive for the life annuity to have the greater economic value? Assume that money can earn 6% compounded monthly.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...
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