12. Ivana Retire is exactly age 55 today, and she wants to stop working. She has accumulated savings of $600,000 and hopes to use her savings to buy a policy that will pay as follows: - a life annuity benefit of $4,000 per month, with the first payment to be made at the end of the first month a death benefit of $B, payable at the moment of death Mortality and Interest: Illustrative Life Table with i = 6% Fractional Age Assumption: UDD Other Potentially Useful Information: d = 0.056604, 12) = 0.058128, (+2) = 0.058411 a. Can Ivana afford a death benefit of $300,000? Justify your answer. (6 marks) b. If she can afford the policy, how much money is left over? If she cannot, she is willing to reduce the death benefit. Determine the new reduced benefit, if necessary. (3 marks) 12. Ivana Retire is exactly age 55 today, and she wants to stop working. She has accumulated savings of $600,000 and hopes to use her savings to buy a policy that will pay as follows: - a life annuity benefit of $4,000 per month, with the first payment to be made at the end of the first month a death benefit of $B, payable at the moment of death Mortality and Interest: Illustrative Life Table with i = 6% Fractional Age Assumption: UDD Other Potentially Useful Information: d = 0.056604, 12) = 0.058128, (+2) = 0.058411 a. Can Ivana afford a death benefit of $300,000? Justify your answer. (6 marks) b. If she can afford the policy, how much money is left over? If she cannot, she is willing to reduce the death benefit. Determine the new reduced benefit, if necessary