At age 69, Kyle used his savings of $50,000 to purchase a life annuity with a guaranteed 5-year minimum. If he will receive payments of $450 at the end of each month and he knows that the annuity provider has based the payment on a nominal annual interest rate of 6.24% compounded monthly.

How many years has the annuity provider assumed the term to be?

Answer rating: 100% (QA)

To determine how many years the annuity provider has assumed the term to be we can use the formula f... View the full answer