The insurance company, AMZ Life, issues life annuities. It prices its annuities using the following probabilities. Survival probabilities Probability of surviving from Year start of year to end of year 1 0.93 2 0.72 0.51 0 The annuities pay $60 000 at the end of each year while the policyholder is alive. AMZ Life insurance believes it can earn 4% p.a. interest on invest- ments. It also has to provide for initial expenses of $50 at the date of issue