You wish to buy an annuity that makes monthly payments for as long as you live. Describe what would happen to the purchase price of the annuity if (1) your age at the time of purchase goes up, (2) the size of the monthly payment rises, and (3) you are in good health.

As your age at the time of purchase goes up, the number of expected monthly payments (Click to select) decreases increases so the price of the annuity (Click to select) decreases increases . The price of the annuity rises as each monthly payment is (Click to select) larger smaller . Because of your good health your life expectancy is longer, therefore, the number of expected monthly payments is (Click to select) higher lower and the price of the annuity (Click to select) increases decreases .