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Old 10-13-2007, 10:33 AM
Zara Zara is offline
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Join Date: Oct 2007
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Default A 65 year old man intends to use his retirement funds to purchase an

annuity from a life insurance company.? given the amount of money the man has available to invest, the insurance company is able to offer two alternatives. the first option is to receive $2785 each month for as long as he lives; the second option is to receieve $3500 each month, but for only 20 years (payments will be made to his estate if he should die before that time) the relevant interest rate is 6 percent per year. how long must the man live so that the first option is a better deal?

can someone plz help me answer this question for my finance assignment?


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