monthly payment if you take this loan? b. Alternatively, you can get a 15-year mortgage with fixed monthly payments and an interest rate of 0.4 % per month. How much would your monthly payments be if you take this loan instead?
* A. 1. This problem is from the Appendix to Chapter 4. Your grandmother bought an annuity from Rock Solid Life Insurance Company for $ 200,000 when she retired. In exchange for the $ 200,000, Rock Solid will pay her $ 25,000 per year until she dies. The interest rate is 5 %. How long must she live after the day she retired to come out ahead( that is, to get more in value than what she paid in)?