Assume a 2.3% expected return andthat the employee will live until they are 92 years old.Remember that the monthly pension of $423 is scheduled to start in 14 years when she turns 65 while the lump-sum check of $32,088 will be paid out today. should this employee keep their pension? Or take the lump sum?

Answer rating: 100% (QA)

To make an informed decision we need to consider different factors including the expected return the individuals lifespan and the available options In ... View the full answer