Analyze the attachment And answer the following questions

Mr X (a UK resident who wishes to remain anonymous) has just sold 100,000 used f10 notes and deposited the proceeds in a dollar-denominated Swiss bank account. Describe fully the effect that this will this have on: (i) the UK's balance of payments (ii) Switzerland's balance of payments (iii) the USA's balance of payments. Assume that the following exchange rates apply: fl = 3SwF $1 = 2SwF.Two independent lives aged x and y have complete future lifetime random variables I, and T, respectively, and their joint complete future lifetime random variable is Try . (i) An annuity of 1 pa is continuously payable until the second death of the two lives. Write down an expression for the present value random variable for this annuity, in terms of the random variables defined above only. [1] (ii) A man aged 60 exact and a woman aged 65 exact wish to purchase an annuity of f25,000 pa payable while they are both alive. If the man dies first, the annuity will reduce to f20,000 pa payable for the remainder of the woman's life. If the woman dies first, the annuity will reduce to f15,000 payable for the remainder of the man's life. (a) Write down an expression for the present value random variable of this benefit, assuming all annuities are payable continuously. (b) Hence or otherwise, calculate the expected present value of this annuity benefit, assuming payment is actually made in monthly instalments in arrears, on the following basis: Mortality: male life - PMA92C20 female life - PFA92C20 Interest: 4% pa [5] [Total 6]