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Mathematics, 09.10.2019 08:30 drcarver
Ruben worked in a union motorcycle factory for 20 years before returning to school to become a paramedic instead. he is 45 now. he has a pension from his previous employer, which would pay him $1500/month after his retirement at 65. assuming he will live to 80 (which is slightly higher than the life expectancy for an american man) he would earn $27 over 15 years. the company has stopped offering pensions and wants to buy out his pension today. should ruben accept a buyout offer of $125,000? assume that he could invest the money at an interest rate of 3% with a monthly compounding.
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