2) Dennis Reynolds, 20, with a constant force of mortality, has a complete life expectancy of 125 years. He purchases a discrete 10-year temporary life annuity immediate. Assuming v = 0.90 and the annuity pays $80,000 per year what is the APV of this annuity? %3| A. 451,952 В. 502,169 C. 506,202 D. 531,952 E. None of above.

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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2) Dennis Reynolds, 20, with a constant force of mortality, has a complete life
expectancy of 125 years. He purchases a discrete 10-year temporary life annuity
immediate. Assuming v = 0.90 and the annuity pays $80,000 per year what is the
APV of this annuity?
A. 451,952
В. 502,169
С. 506,202
D. 531,952
E. None of above.
Transcribed Image Text:2) Dennis Reynolds, 20, with a constant force of mortality, has a complete life expectancy of 125 years. He purchases a discrete 10-year temporary life annuity immediate. Assuming v = 0.90 and the annuity pays $80,000 per year what is the APV of this annuity? A. 451,952 В. 502,169 С. 506,202 D. 531,952 E. None of above.
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