Please give answers for all parts of the question quickly. Thanks!
Professor%u2019s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $88000 at age 65 the firm will pay the retiring professor
$800 a month until death.
If the professor%u2019s remaining life expectancy is 20 years what is the monthly rate on this annuity? What is the effective annual rate?
(Do not round intermediate calculations. Round your answers to 2 decimal places.)
If the monthly interest rate is 1% what monthly annuity payment can the firm offer to the retiring professor? (Do not
round intermediate calculations. Round your answer to 2 decimal places.)
$