10. (10 points) Mortality follows De Moivre's Law with = 120. A 10 year temporary annuity...
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10. (10 points) Mortality follows De Moivre's Law with = 120. A 10 year temporary annuity due is issued to (90) which pays 5000 annually. The actuarial present value for this life annuity is calculated based on an annual effective interest rate of 6%. Alternatively, (90) can elect a whole life annuity due which pays 5000 annually. The actuarial present value for this life annuity equals that of the first option provided the annual effective interest rate is i. Find i. 10. (10 points) Mortality follows De Moivre's Law with = 120. A 10 year temporary annuity due is issued to (90) which pays 5000 annually. The actuarial present value for this life annuity is calculated based on an annual effective interest rate of 6%. Alternatively, (90) can elect a whole life annuity due which pays 5000 annually. The actuarial present value for this life annuity equals that of the first option provided the annual effective interest rate is i. Find i.
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Answer rating: 100% (QA)
ANS WER i 5 5 D ETA IL ED WORK ING Let P the present ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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