Table 1.

Year	Probability of surviving from start of year to end of year
1	0.75
2	0.58
3	0.37
4	0.23
5	0

d. [6marks] Jackson will use $50,ooo from the total sale proceed ofinstruments as a single premium to purchase an annuity today. This annuity pays X at the end of each year while Jackson is alive. The estimated probability of Jackson surviving for the next 5 years is stated in table I. The yield rate isyassumed to be J1-3.2% pa. Calculate X value. Round your answers to three decimal places. Draw a detailed contingent cash flow diagram for instrument D, from the perspective of Jackson. 2