What is the monthly rate on annuity

Reference no: EM13271411

Prof Annuity Corp offers a lifetime annuity to retiring professors.For a payment of $80,000 at age 65, the firm will the pay retiringprofessor $600 a month til death

a. If the professor's remaining life expectancy is 20 years, what is the effective annual rate? What is the monthly rate on Annuity?

b. if the monthly interest rate is 0.5%, what monthly annuity payment can the firm offer to the retiring professor?

Reference no: EM13271411

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