1. Increase / decrease

2. Increase / decrease

3. Smaller / larger

4. Lower / higher

5. Decrease / increase

You wish to buy an annuity that makes monthly payments for as long as you live. Describe what would happen to the purchase price of the annuity if (1) your age at the time of purchase goes up, (2) the size of the monthly payment falls, and (3) you are in poor health. so the price of the As your age at the time of purchase goes up, the number of expected monthly payments increases annuity (increases The price of the annuity falls as each monthly payment is smaller Because of your poor health your life expectancy is shorter, therefore, the number of expected monthly payments is (Click to select) and the price of the annuity (Click to select)