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How long one anticipate living for annuity to be preferable

Paul Bearer may elect to take a lump-sum payment of $25,000 from his insurance policy or an annuity of $3,200 annually as long as he lives. How long must Paul anticipate living for the annuity to be preferable to the lump sum if his opportunity rate is 8%?

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Q : How long one anticipate living for annuity to be preferable

Paul Bearer may elect to take a lump-sum payment of $25,000 from his insurance policy. How long must Paul anticipate living for the annuity to be preferable to the lump sum if his opportunity rate is 8%?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: How long one anticipate living for annuity to be preferable

Reference No:- TGS0674992

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Euros-ton and the exchange rate

Q : Question-optimal cash balance

Q : How much can expect to have when retires at age sixty two

Q : Calculate the npv of the assembler

Q : How long one anticipate living for annuity to be preferable

Q : Question regarding the operating cash flow

Q : Percentage-of-completion method

Q : What return should she expect anticipate

Q : Calculate amount by which his divisions profits be changed

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Solution Preview :

Prepared by a verified Expert

Finance Basics: How long one anticipate living for annuity to be preferable

Reference No:- TGS0674992

Recent Questions Asked Finance Basics

Q : Euros-ton and the exchange rate

Q : Question-optimal cash balance

Q : How much can expect to have when retires at age sixty two

Q : Calculate the npv of the assembler

Q : How long one anticipate living for annuity to be preferable

Q : Question regarding the operating cash flow

Q : Percentage-of-completion method

Q : What return should she expect anticipate

Q : Calculate amount by which his divisions profits be changed

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