18. Betty White is ready to retire and would like to buy an annuity that would...

18. Betty White is ready to retire and would like to buy an annuity that would guarantee her afixed income. The annuities are as follows:

Annuity: Cost of Annuity: Annual Annuity Payment: Duration of Annuity(years)

A $50,000 $8,500 12

B $60,000 $7,000 25

C $70,000 $8,000 20

Question: Alternatively, Betty could earn 11 percent on her money by placing it in a savings account. What should she do with her money?

A) Purchase Annuity A B) Purchase Annuity B C) Purchase Annuity C D) Place her money in a savings account

16. The time value of money is primarily about inflation. A) True B) False

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Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago

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