Your pension plan has two alternative payout methods. The first is a lump sum of $300,000 on your 65th birthday. The second is ordinary annuity with the first payment on your 66th birthday and the last payment on your 85th birthday
If the interest rate is 10.5%, then what size annuity payment would equate the value of the two alternatives?
A) $36,447.98
B) $35,911.96
C) $37,059.21
D) $35,237.89
E) $34,687.32
A
You might also like to view...
Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation
Indicate whether the statement is true or false
Larry, a merchant seller, contracted with Simon to buy welding equipment. The contract stipulated that Larry would pick up the equipment from Simon's warehouse on the 14th day from the date of the contract
But Larry could not make the pick up on that date and before he could do so on the 15th day, the warehouse was burned down by miscreants. In this situation, who bears the risk of loss of the goods that were to be received by Larry? A) The risk of loss lies with Larry for delaying the pick up. B) The risk of loss lies with Simon for not protecting the goods. C) The risk of loss is equally shared by Larry and Simon. D) The risk of loss is shifted to the persons responsible for the fire.