Question
Today is January 1 2021, 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 2021, 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 = 4.79% p.a. Calculate premium value. Round your answers to three decimal places.
| Year | |||
|---|---|---|---|
| 1 | 0.78 | ||
| 2 | 0.65 | ||
| 3 | 0.28 | ||
| 4 | 0 |
a.15572.432
b.15796.120
c.13294.239
d.17100.000
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International Finance Discussion Papers The Information Content Of High Frequency Data For Estimating Equity Return Models And Forecasting Risk
Authors: United States Federal Reserve Board, Dobrislav P. Dobrev, Pawel J. Szerszen
1st Edition
1288724810, 9781288724819
