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3. What is the EPV of an annuity for (x) that pays $12,000 at the beginning of each quarter of a year for the next
3. What is the EPV of an annuity for (x) that pays $12,000 at the beginning of each quarter of a year for the next 10 years, or until the death of (x), whichever comes first? You are given that: - the annual effective interest rate is 8% - a term insurance policy that pays $300,000 at the end of the quarter in which death occurs only if death occurs in the next 10 years has an EPV of $66,000. - a continuous whole life policy of $200,000 for a person of age x+10 has an EPV of $120,000 - for a person age (x), a 10-year deferred whole life policy that pays $120,000 at the mo- ment of death has an EPV of $30,000
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