When you retire at 65 you can take either $500,000 in cash or an ordinary annuity that promises to pay $47.,488.98 per year for as long as you live. How long must you remainamong the living for the annuity to be a better deal, if the rate of interest is constant at 8% per year?O over 25 yearsO 17 yearsO 18 yearsO 22 years

Today value=PV=$500000PMT=annuity=$47488.98Rate-r=8%Required =number of years

en you retire at 65 you can take either $500,000 in cash or an ordinary annuity that promises to pay $47.,488.98 per year for as long as you live. How long must you remain ong the living for the annuity to be a better deal, if the rate of interest is constant at 8% per year? over 25 years 17 years 18 years

en you retire at 65 you can take either $500,000 in cash or an ordinary annuity that promises to pay $47.,488.98 per year for as long as you live. How long must you remain ong the living for the annuity to be a better deal, if the rate of interest is constant at 8% per year? over 25 years 17 years 18 years

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

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