A joint life annuity is issued to a male aged 65 exact and a female aged 62 exact. The annuity is payable quarterly in arrear, the first payment commencing 3 months after issue. The annuity has the following conditions: 10,000 per annum whilst both lives survive. If the male life predeceases the female life the annuity reduces to 7,500 per annum payable for the remainder of her lifetime. If the female life predeceases the male life the annuity reduces to 6,000 per annum payable for the remainder of his lifetime. Calculate the expected present value of the annuity. Basis: Mortality: PMA92C20 (male) and PFA92C20 (female) Interest: 4% per annum Expenses: Ignore