What is the effective "cost'''' of the 50% survivor annuity

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Mr. Jones' pension pays $3,000 a month under the single life annuity option or $2,550 a month under the joint and 50% survivor annuity option. Mr. and Mrs. Jones elect the joint and 50% survivor annuity. What is the effective "cost'' of the 50% survivor annuity?

$450 per month

$1,500 per month

$2,550 per month

$3,000 per month

Reference no: EM13869696

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