Suppose that the valuation rate is 2% p.a. What is the actuarially fair price of a life

Question:

Suppose that the valuation rate is 2% p.a. What is the actuarially fair price of a life annuity that pays $30,000 per year at the end of each year with no guarantee period for a seventy-year-old female?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Strategic Financial Planning Over The Lifecycle A Conceptual Approach To Personal Risk Management

ISBN: 9780521148030

1st Edition

Authors: Narat Charupat, Huaxiong Huang, Moshe A. Milevsky

See More Books

Question Posted: Jun 14, 2024 01:04 AM

See More Questions

BACKGROUND An SM bond is a 35-year Australian government bond with a face value of $1. They are marketed to consumers saving for retirement (who buy the S part) and investors (who buy the M part)....
Hi, I have an Assignment for my Finance Subject. I have attached the necessary documentation here for you to view including the Lecture slides of all the Topics covered for this assignment. Please...
i need a solution of computional problems i really need help on those. Chapter 15Leases MULTIPLE CHOICE 1. Generally accepted accounting principles require that certain lease agreements be accounted...
What do you think Dan Barry means when he claims that Ring Dings taste like America?
What is the power of the following planned studies using a chi-square test for independence with p N-25 25 50 25 25 25 3 n222335 222232 3rd 3rd 3rd mdmmmm
Another option discussed by Tom, Jessica, and Nolan would be to begin a regular dividend payment to shareholders. How would you evaluate this proposal? Electronic Timing, Inc. (ETI), is a small...
What is a spot rate with respect to foreign currency transactions? Could a spot rate ever be a historical rate? Could a spot rate ever be a fixed exchange rate? Discuss. AppendixLO1
The average expenditure on Valentine's Day was expected to be $100.89 (USA Today, February 13, 2006). Do male and female consumers differ in the amounts they spend? The average expenditure in a...
Give Me Liberty An. Calculus Volume 1. Read Kaumajet Factory produces two products: table lamps and desk lamps. It has two separate departments: Fabrication and Assembly. The factory overed budget...
A type of IRA where contributions are taxed, but earnings are not Match the terms with the definitions. Some terms may not be used. a. 401(k) plan b. 403 (b) plan c. defined benefit plan d. defined...
You have been working for your company for exactly twenty years. You belong to a DB plan whose annual pension income is 2% of the average salary during the past three years, multiplied by the number...
You have a position open and are trying to hire a new person. Assume that the new persons experience will follow a normal distribution with the mean and (sample) standard deviation of your current...
The employee.class.php file contains an abstract, base class named Employee . One of the attributes of the class is an object of Person . This demonstrates one of the three relationship types among...
A direct shear test is performed on a saturated specimen of loose sand. A normal stress equal to 100 kPa is applied and a maximum shear stress of 75 kPa is measured in the shear test. Determine the...
How does budgeting help managers? Budgeting helps managers determine if their goals are ethical and achievable. Budgeting helps managers determine if their goals are reasonable and achievable....
If the 230-lb block is released from rest when the spring is unstretched, determine the velocity of the block after it has descended 5ft . The drum has a weight of 70lb and a radius of gyration of...
A B C D E F 1 Frequency : Monthly 2 Loan Amount: 150000.00 3 Interest Rate: 7.25% 4 Term(years): 30.00 5 No. of payments in a year: 12 time(s) 6 Periodic Rate: 0.60% =C3/C5 7 Total number of payment:...
Henry Mueller Supply Co. sells tamperproof, normally open thermostats (i.e., thermostat closes as temperature rises). Annual cash flows are shown in the table below. Determine the future worth of the...
(a) Prove that form an orthonormal basis for R3 for the usual dot product. (b) Find the coordinates of v = (1, 1, 1)T relative to this basis. (c) Verify formula (5.5) in this particular case. 48-65...
If the auditor believes that the financial statements prepared on the basis of the entity's income tax are not adequately titled, the auditor should : A)Issue a resignation of opinion. B)Explain the...
initial stock offering to the public. This REIT specializes in the acquisition and management of warehouses. Your firm, Blue Street Advisors, is an investment management company that is considering...
Question 3 You have been hired to run a pension fund for Mackay Inc, a small manufacturing firm. The firm currently has Gh5 million in the fund and expects to have cash inflows of $2 million a year...

Suppose that the valuation rate is 2% p.a. What is the actuarially fair price of a life

Question:

Step by Step Answer:

Strategic Financial Planning Over The Lifecycle A Conceptual Approach To Personal Risk Management

Students also viewed these Business questions