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Ryan who is (65) receives an annuity as his pension benefit. The annuity is a 10 year certain and life annuity which pays 50,000 at the beginning of each year. The first 10 payments are guaranteed to be made even if Ryan dies prior to the payment. After 10 payments, payments are only made if Ryan is alive. You are given that mortality follows the Standard Ultimate Life Table with interest at 5%. Calculate the Actuarial Present Value of Ryans pension benefit.

Ryan who is (65) receives an annuity as his pension benefit. The annuity is a 10 year certain and life annuity which pays 50,000 at the beginning of each year. The first 10 payments are guaranteed to be made even if Ryan dies prior to the payment. After 10 payments, payments are only made if Ryan is alive. You are given that mortality follows the Standard Ultimate Life Table with interest at 5%. Calculate the Actuarial Present Value of Ryans pension benefit.

College Algebra
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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Ryan who is (65) receives an annuity as his pension benefit. The annuity is a 10 year certain and life annuity which pays 50,000 at the beginning of each year. The first 10 payments are guaranteed to be made even if Ryan dies prior to the payment. After 10 payments, payments are only made if Ryan is alive. You are given that mortality follows the Standard Ultimate Life Table with interest at 5%. Calculate the Actuarial Present Value of Ryans pension benefit. LTAM question calculate APV
Transcribed Image Text:Ryan who is (65) receives an annuity as his pension benefit. The annuity is a 10 year certain and life annuity which pays 50,000 at the beginning of each year. The first 10 payments are guaranteed to be made even if Ryan dies prior to the payment. After 10 payments, payments are only made if Ryan is alive. You are given that mortality follows the Standard Ultimate Life Table with interest at 5%. Calculate the Actuarial Present Value of Ryans pension benefit. LTAM question calculate APV
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