Assume that Kate paid $90,000 for a $600-a month pure annuity. She dies after receiving the payments for four years. How much did she receive in annuity payments? How much will a successor beneficiary receive in cash payment at her death?
Assume that Kate paid $90,000 for a $400-a month installment-refund annuity. She dies after receiving the payments for five years. How much will a successor beneficiary receive in cash payment at her death? For how many more years will a successor beneficiary be receiving the monthly payments?