Andrea, aged 25, purchases a life annuity of 2000 per year. From tables, we find Nis =

Question:

Andrea, aged 25, purchases a life annuity of 2000 per year. From tables, we find Nis = 2450, 7^27 = 2290 and Die = 75.

(a) Find the net single premium Andrea should pay for this annuity if the first payment occurs in one year.

(b) Find the net single premium Andrea should pay for this annuity if the first payment occurs in two years.

(c) Find the net single premium Andrea should pay for this annuity if the first payment occurs immediately.

(d) Find / if/?25 = -9353.

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

Step by Step Answer:

Question Posted: