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Today is January 1 2020, Jackson will use a single premium to purchase an annuity today. This annuity pays 10,000 at the end of each
Today is January 1 2020, Jackson will use a single premium to purchase an annuity today. This annuity pays 10,000 at the end of each year while Jackson is alive. The estimated probability of Jackson surviving for the next 4 years is stated in following table. The yield rate is assumed to be j1 = 2.24% p.a. Calculate premium value. Round your answers to three decimal places. Year Probability of surviving from start of year to end of year 0.87 2 0.52 1 3 0.38 4 0 Select one: a. 17700.000 b. 17039.697 c. 16932.909 O d. 14445.910
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