blems option of company has decided to end it's pension program. The company has given employees t ng a lump sum payment of $350,000 when they reach 65 or an annuity of $3000 a month for life rting at 65). Assuming an average interest rate of 8% and 20 years of retirement, which option should employees take? D F Rate Number Of Periods PMT PV G 8% 8% 20 $350,000.00 $3,000.00 ($4,374,999.96) ($37,500.00) H 20 I
blems option of company has decided to end it's pension program. The company has given employees t ng a lump sum payment of $350,000 when they reach 65 or an annuity of $3000 a month for life rting at 65). Assuming an average interest rate of 8% and 20 years of retirement, which option should employees take? D F Rate Number Of Periods PMT PV G 8% 8% 20 $350,000.00 $3,000.00 ($4,374,999.96) ($37,500.00) H 20 I
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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2. A company has decided to end it's pension program. The company has given employees the option of
taking a lump sum payment of $350,000 when they reach 65 or an annuity of $3000 a month for life
(starting at 65). Assuming an average interest rate of 8% and 20 years of retirement, which option should
the employees take?
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$350,000.00 $3,000.00
($4,374,999.96) ($37,500.00)
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