Sofi has just won $1,000,000 in the most recent Lotto 649 draw. Each of Sofi's four grandparents died exactly on their 90th birthday. Since Sofi is 45 years of age, she is assuming that her life is half over and she wants to know if she would be able to retire right now and live out the rest of her days comfortably if she gave the money to Manulife and purchased a life annuity. If the annuity payment is at the beginning of each period, and Manulife offers an interest rate of 6%.

What would be the regular monthly payment Sofi would receive from Manulife?

Answer rating: 100% (QA)

To calculate the regular monthly payment Sofi would receive from Manulife we need to use the concept ... View the full answer