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Calculate the annual premium payable in advance by a life now aged exactly 32, in respect of a deferred annuity payable from age 60 for
Calculate the annual premium payable in advance by a life now aged exactly 32, in respect of a deferred annuity payable from age 60 for 5 years certain and for life thereafter. The amount of the annuity is 400 pa, payable annually in arrear, and the insurer incurs an additional administration cost of 2 when each annuity payment is made. The premium is paid throughout the deferred period or until the earlier death of the policyholder. Basis: AM92 Ultimate mortality, 6% pa interest
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