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On her 40th birthday, Judy decided to enter into a pension plan paying one unit of money at the beginning of each year, starting from

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On her 40th birthday, Judy decided to enter into a pension plan paying one unit of money at the beginning of each year, starting from Judy's 70-year birthday. The plan has also the provision of a death benet of the same unit of money in the case of death before 70 years age. The case is fully discrete. In calculations below, use the Illustrative Table (and, hence, 5 = 4%). ( Remember 1.! 7 1 7 6.) Advice: Insert particular data only after you wrote a corresponding symbol. Try to organize your calculations in a way that (1] in each step your calculations will not be too long (2) you will not have to compute the same characteristic several times (like a deferred annuity). Compute typical entities (like 1:\" or nEz) separately. Question 27 5 pts Find the APV of the product Judy is buying. 0 0.100 O 1.772 O 0.077 O 2.680 Question 28 5 pts Find the APV ofJudy's premium annuities for the rate equals one unit of money. 0 19.561 0 17.346 0 21.255 0 16.911 Question 29 5 pts Given that the plan adds 5% to the net (benet) premium rate, nd the premium rate at which Judy should pay. 0 0.1664 0 0.0951 0 0.0906 0 0.1604

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