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5. A person aged 25 won a cash for life lottery. The lottery pays out the money as a whole life annuity due with the
5. A person aged 25 won a cash for life lottery. The lottery pays out the money as a whole life annuity due with the following payments: $6000 per month (end of every month) for the first 5 years $3000 per month (end of every month) for the next 15 years $4500 per month (end of every month) thereafter Given the following information, how much money did the person win (in other words, what would be the NSP of this annuity)? (hint: try the stacking method; answer to nearest dollar) (8 marks) 5E25 = 0.8172692 1 0E25 = 0.6679088 15E25 = 0.5452440 20E25 = 0.4437138 25:31 = 4.61999 25:10 = 8.39566 25:13 = 11.48042 25:20 = 13.99613 ,5 = 22.19752
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