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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 jj = 3.8% p.a. Calculate premium value. Round your answers to three decimal places. Year Probability of surviving from start of year to end of year 1 0.76 2 0.61 3 0.31 4 a. 15755.169 O b. 12909.578 O c. 16800.000 O d. 15592.458

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 jj = 3.8% p.a. Calculate premium value. Round your answers to three decimal places. Year Probability of surviving from start of year to end of year 1 0.76 2 0.61 3 0.31 4 a. 15755.169 O b. 12909.578 O c. 16800.000 O d. 15592.458

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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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 j = 3.8% p.a. Calculate premium value. Round your answers to three decimal places. Year Probability of surviving from start of year to end of year 1 0.76 2 0.61 3 0.31 4 O a. 15755.169 O b. 12909.578 O c. 16800.000 O d. 15592.458
Transcribed Image Text: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 j = 3.8% p.a. Calculate premium value. Round your answers to three decimal places. Year Probability of surviving from start of year to end of year 1 0.76 2 0.61 3 0.31 4 O a. 15755.169 O b. 12909.578 O c. 16800.000 O d. 15592.458
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