Guaranteed Annuity

Finance and investment;

In retirement, I offer 2 options: 1) an immediate lump sum payment of $ 800,000 2) a regular income of $ 100,000 payable to me. The pension payments are guaranteed for a period of 10 years with continuation of payments to be made to die in my state I the duration of the warranty. If my life expectancy is 18 years and the opportunity cost of funds for retirement is 11% per annum (with interest compounded quarterly) for the first 5 years and 12% (again with interest compounded quarterly) thereafter. What choice should choose the course that I expected to live much as my life expectancy? What is the rate of return is equivalent to winning the annuity of $ 1000, if you were charged at the beginning of each year to the pension option? If they show the gratitude of calculation A !!!!! much: BO Jim is a matter of finances, but I'm not cheating on the exam please tell me if you know the answer Muchas Gracias!

A.

MYG Annuities Dave Dinino Annuity Guaranteed Advisor Kansas

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