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Old 10-16-2007, 01:48 AM
Zara Zara is offline
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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 please tell me how to answer this question?
i need answer to this question for my finance assignment!!!


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