5. Selyn Cohen is 70 years old and recently retired. He wishes to provide retirement income for himself and is considering an annuity contract with Monument Life Insurance Company. Such a contract pays him an equal amount each year he lives. For this cash-flow stream, he must put up so much money at the beginniig. According to actuarial tables, his life expectancy is 15 years, and that is the duration on which the insurance company bases its calculations regardless of how long Cohen actually lives.