#9

(10 points) Chris is currently age 45 who purchases a special deferred whole life annuity-due policy which will pay him the following benefits: (i) guaranteed annual payments of B for 5 years, with the first payment to start when he reaches age 65; and (ii) annual payments of $100,000, if alive, thereafter. You are given: (a) Mortality follows the Illustrative Life Table and i 6%; (b) The actuarial present value of Chris' life annuity benefits is $225,000. Calculate B. (10 points) Chris is currently age 45 who purchases a special deferred whole life annuity-due policy which will pay him the following benefits: (i) guaranteed annual payments of B for 5 years, with the first payment to start when he reaches age 65; and (ii) annual payments of $100,000, if alive, thereafter. You are given: (a) Mortality follows the Illustrative Life Table and i 6%; (b) The actuarial present value of Chris' life annuity benefits is $225,000. Calculate B