A man is offered the choice of a continuous life annuity paying 20,000 per year or a
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A man is offered the choice of a continuous life annuity paying 20,000 per year or a continuous 5-year annuity with certain payments at X per year, followed by a continuous life annuity paying X per year. Assuming S = .05 and /i^ = 06 for all x, find
^such that the two annuities are equivalent.
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Theory Of Interest And Life Contingencies With Pension Applications A Problem Solving Approach
ISBN: 978-1566983334
3rd Edition
Authors: Asa Michael M. Parmenter, Ph.d.
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