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2. A person, currently age 60, has saved up $400,000 and plans to retire. He/she buys a 30-year temporary life annuity with payments twice a

2. A person, currently age 60, has saved up $400,000 and plans to retire. He/she buys a 30-year temporary life annuity with payments twice a month (m = 24). The first payment of $R is due one-half month from now (annuity immediate).

(a) What is R?

(b) What is R if the first 10 years of payments are guaranteed?

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