Question
Today is January 1 2021, Jackson will use a single premium to purchase an annuity today. This annuity pays 10,000 at theend of each year
Today is January 1 2021, Jackson will use a single premium to purchase an annuity today. This annuity pays 10,000 at theend of each year while Jackson is alive. The estimated probability of Jacksonsurviving for the next 4 years is stated in following table.The yield rate is assumedto be j1 = 2.82% p.a.Calculate premium value. Round your answers to three decimalplaces.
| Year | |||
|---|---|---|---|
| 1 | 0.82 | ||
| 2 | 0.68 | ||
| 3 | 0.48 | ||
| 4 | 0 |
a.18823.006
b.19800.000
c.15711.680
d.18728.802
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
2nd edition
978-0132771801, 9780132771580, 132771802, 132771586, 978-0133052152
