What income replacement ratio

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Reference no: EM131924011

At 65 Emily has just retired and has decided to purchase an annuity with some of her retirement savings. The interest rate from which the annuity is calculated is 3%. She has $500,000 in her retirement account which is also providing annual interest of 3%. She wishes to have $100,000 left at age 90. What income replacement ratio can she obtain from this annuity if her final salary was $50,000?

Reference no: EM131924011

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