Charles is the sole beneficiary of his late uncle's life insurance policy. The face value of the policy is $785,000. Charles has decided to accept annual annuity payments of $95,000. The interest rate on the policy is 5%. How many annual payments will Charles receive from this policy?

Question

Quizplus · Accepted Answer

The number of payments can be calculated using the formula for the present value of an annuity. Solving for the number of payments with the given interest rate and payment amount results in approximately 10.92 years.

Charles Is the Sole Beneficiary of His Late Uncle's Life