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A person, currently age 55, retires and buys a whole life annuity paying $15,000 a year. The first payment is due one year from now
A person, currently age 55, retires and buys a whole life annuity paying $15,000 a year. The first payment is due one year from now (age 56). The first 10 payments are guaranteed and any payments thereafter are contingent upon survival. What is the net single premium of this annuity?
- A.
$200,254.68
- B.
$173,258.43
- C.
$198,322.32
- D.
$181,749.33
- E.
$17,865.12
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