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What monthly income will diana receive

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Question - Diana, a widow, joined her employer's defined contribution pension plan 25 years ago, and is now reaching age 65. Diana would like to use her current pension assets of $234,762 to purchase a life annuity with monthly payments beginning at the end of her first month of retirement. Assuming an annual nominal return of 6%, compounded monthly, and a life expectancy of 20 years, what monthly income will Diana receive from her current pension assets?

a. $1,861.12

b. $1.681.93

c. $1.186.38

d. $1.595.23

Reference no: EM133120736

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