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For a special 3-year temporary life annuity-due payable monthly on (30), you are given: (i) 430 = 931 = 0.02 (ii) 932 = 0.03 (iii)

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For a special 3-year temporary life annuity-due payable monthly on (30), you are given: (i) 430 = 931 = 0.02 (ii) 932 = 0.03 (iii) Deaths are uniformly distributed over each year of age. (iv) i = 0.06 (v) The monthly payments are: Year Monthly Payment 1 100 2 200 3 300 Calculate the expected present value of these annuity payments. (A) 6125 (B) 6250 (C) 6375 (D) 6500 (E) 6625

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