Rebeccah is 65 and has just retired she can select a, Ask an Expert

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Rebeccah is 65 and has just retired. She can select a pension of $1745 payable at the end of each month guaranteed for the rest of her life, but not indexed for inflation, or take a lump sum of $312,000. Assume she can invest the lump sum at 6% per year, compounded monthly, and draw the same income as the pension. If she lives to be 95 years old, which is the better choice?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92398318

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