Harmit joined Moogle Inc.'s defined contribution pension plan on January 1, 1985. On December 31, 2017, Harmit plans to retire and expects that her pension accumulation will be valued at $243,750.
If Harmit uses the assets to purchase a single life annuity that begins immediately with payments at the beginning of each month, what monthly income will the pension assets purchase? Assume a nominal return of 4%, compounded monthly, and a life expectancy of 30 years.
Indicate values input into your financial calculator.2. Harmit joined Moogle Inc.'s defined contribution pension plan on January 1, 1985. On December 31, 2017, Harmit plans to retire and expects that her pension accumulation will be valued at $243,750.