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How many years will need to live to break even

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Suppose you set aside $1 million for an immediate annuity. (i.e., you give $1 million no to an insurance company) with the following terms:

  1. you will get monthly income starting from next month, the monthly income is $4,000 paid at the end of each month until death. suppose you expect to live for an additional 20 years.

Question 1: How many years will you need to live to break even (i.e., the number of years so the present value of the annuity payment equals $1 million)

Reference no: EM132460633

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