Juanita paid a life insurer $45,000 in exchange for an immediate life annuity. Juanita will receive $500 per month from the insurer, and her life expectancy is 15 years (180 months). What is the exclusion ratio in this case?
A) 33.33 percent
B) 40.00 percent
C) 50.00 percent
D) 66.67 percent
Answer: C
Business
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