SOLUTION: You have set up a life annuity with a present value of $200,000. If your life expectancy at retirement is 20 years, what will your monthly income be? Take the APR to be 6%.

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Question 1187057: You have set up a life annuity with a present value of $200,000. If your life expectancy at retirement is 20 years, what will your monthly income be? Take the APR to be 6%.


Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
your annuity has a present value of 200,000
your life expectancy is 20 years.
i believe the interest is compounded monthly.
your monthly interest rate will be 6% / 12 = .5% per month.
your number of months will be 20 * 12 = 240.
your payments ae presumed to be be at the end of each month.
you will receive 1432.86 at the end of each month.

i used the financial calculator at https://arachnoid.com/finance/index.html to get these results.

here's what the results look like.



inputs ere everything except pmt.
output was pmt.