ASP = 0.1196 Question No. 3: For a group of 500 lives, each age 65, with independent future lifetimes, you are given: Each life is to be paid 5 per month at the beginning of each month, if alive. To fund these payments, each life will contribute an amount of c to a fund to support these payments. This contribution is to be made immediately today and only once. Y is the present value random variable today of total annuity payments to the 500 lives. . (12) = 0.12 PA!? -0.0395 The 95th percentile of a standard normal distribution is 1.645. Using the normal approximation, calculate c such that Pr|500c > Y] = 0.95. ASP = 0.1196 Question No. 3: For a group of 500 lives, each age 65, with independent future lifetimes, you are given: Each life is to be paid 5 per month at the beginning of each month, if alive. To fund these payments, each life will contribute an amount of c to a fund to support these payments. This contribution is to be made immediately today and only once. Y is the present value random variable today of total annuity payments to the 500 lives. . (12) = 0.12 PA!? -0.0395 The 95th percentile of a standard normal distribution is 1.645. Using the normal approximation, calculate c such that Pr|500c > Y] = 0.95