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A pension plan member is entitled to a benefit of $10,000 per year at his/her birthday since aged 65 with 10 payments guaranteed. He/She can
A pension plan member is entitled to a benefit of $10,000 per year at his/her birthday since aged 65 with 10 payments guaranteed. He/She can opt to take a higher benefit with no guaranteed payments. The revised benefit is calculated to have equal APV at age 65 to the original benefit. Calculate the revised benefit using the De Moivre's Law with w 100, with discount at 5% per year
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