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Badger, in your formula you use a period of 25. Where is this derived from?

This is just my estimate of longevity; starting at age 65; using 25 gets one to a terminal age of 90; actually somewhat aggressive; e.g. most 65 year-olds die before attaining age 90.

More importantly; when evaluating alternative cashflows; almost irrespective of the interest rate used; the mathematics flatten out such that there is almost no material difference caused by using 25, 30, 40 or 50. Conversely, using 15 or 20 years versus 25 years can make a material difference in mathematical computations.


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