Your aunt is evaluating her retirement pension.She can retire at age 65 and collect $1,000 per month for the rest of her life.Assume that payments begin one month after her 65^th birthday.If your aunt lives to be exactly 80 years old and can earn 7% interest (compounded monthly),what is the equivalent lump sum she would need at retirement to equal the value of the pension?

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The Answer of Your aunt is evaluating her retirement pension.She can retire at age 65 and collect $1,000 per month for the rest of her life.Assume that payments begin one month after her 65^th birthday.If your aunt lives to be exactly 80 years old and can earn 7% interest (compounded monthly),what is the equivalent lump sum she would need at retirement to equal the value of the pension?

Your Aunt Is Evaluating Her Retirement Pension