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Old MathJax webview can you show the working since i coudlnt find the g for PV just wanna compare the answer XYZ Insurance has an
Old MathJax webview
can you show the working since i coudlnt find the g for PV
just wanna compare the answer
XYZ Insurance has an obligation to pay the medical costs for a policyholder. The average annual claims will be RM5,000, and the medical inflation (increment) is expected to be 6% per year for the first 10 years before remain fix for the rest of coverage period. The claimant is expected to live an additional 25 years. The claim payments are made at yearly intervals, with the first claim payment is to be made one year from today. Find the present value of the obligation if the annual interest rate is 8%. (10 marks)Step by Step Solution
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