Alex and Bob are business partners. They share a birthday today and Alex is turning 60 and Bob is turning 55. They want to buy a deferred reversionary annuity, that will pay $10,000 per annum to Bob after the death of Alex if it occurs after 5 years. Use AM92 ultimate at 4%. You are given that 65:60 = 10.5982 (a) What is the expected present value of this deferred reversionary annuity? (5 marks) (b) Rather than paying for this annuity with a single premium, Alex and Bob wish to pay level premiums annually in advance over the next 5 years. Give an equation that could be solved to find the value of this level premium and explain the reason for your answer. (2 marks) Alex and Bob are business partners. They share a birthday today and Alex is turning 60 and Bob is turning 55. They want to buy a deferred reversionary annuity, that will pay $10,000 per annum to Bob after the death of Alex if it occurs after 5 years. Use AM92 ultimate at 4%. You are given that 65:60 = 10.5982 (a) What is the expected present value of this deferred reversionary annuity? (5 marks) (b) Rather than paying for this annuity with a single premium, Alex and Bob wish to pay level premiums annually in advance over the next 5 years. Give an equation that could be solved to find the value of this level premium and explain the reason for your answer. (2 marks)