Question
a) The Net Single Premium (NSP) for a life annuity purchased by (45) is $250,000. The annuity provides for annual payments of $R, first payment
a) The Net Single Premium (NSP) for a life annuity purchased by (45) is $250,000. The annuity provides for annual payments of $R, first payment of $R to be made at age 60. Determine R. b) A person aged 62 purchases a whole life annuity paying $24,000 at the end of each year. What is the net single premium (NSP) of this annuity?
c) A person aged 50 purchases a 20-year temporary life annuity paying $10,000 at the end of each year. What is the NSP of this annuity?
d) A person aged 50 pays $500,000 to purchase a whole life annuity that pays $R at the beginning of each year. The first 10 payments are guaranteed. Calculate $R.
e) $X is the NSP for a special 3 year ordinary temporary life annuity purchased by (60) that provides for annual payments of; $200,000, $133,000 and $100,000 at the end of policy years 1, 2, and 3 respectively. Calculate X.
f) Jane deposits $2,500 per year into a savings account for 10 years. The first deposit is at age 50 and the final deposit is at age 59. The deposits are refunded in the event of death before age 60. The savings account earns interest at j = 5%. At age 60, , Jane purchases a whole life annuity due with monthly payments of $M. Calculate $M.
h) Calculate 60,000 5| a45:10| (6)
rks) You are given i = 5% and the following values for this question: X 9x SEX 10EX 20EX 45 0.35994 50 0.60182 0.34824 55 0.77382 0.59342 0.32819 600.00340 0.76687 0.57864 0.29508 61 0.00379 62 0.00423 17.8162 17.0245 16.0599 14.9041 8.0751 8.0550 8.0192 7.9555 rks) You are given i = 5% and the following values for this question: X 9x SEX 10EX 20EX 45 0.35994 50 0.60182 0.34824 55 0.77382 0.59342 0.32819 600.00340 0.76687 0.57864 0.29508 61 0.00379 62 0.00423 17.8162 17.0245 16.0599 14.9041 8.0751 8.0550 8.0192 7.9555Step by Step Solution
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