Alpha (age 65) and Beta (age 66) each purchase a whole life annuity with annual payments...

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• Alpha (age 65) and Beta (age 66) each purchase a whole life annuity with annual payments of $10 with the first payment is on the day of purchase. ● • The annuities are paid for with a single premium at purchase ("net single premium") ● ● The interest rates the insurance company uses: o 4.0% for the first year O 5.0% for years 2 and later Rates from the mortality table the insurance company uses: 965-0.015 966-0.016 • The net single premium that Beta pays is $120 ● Calculate the net single premium Alpha pays • Alpha (age 65) and Beta (age 66) each purchase a whole life annuity with annual payments of $10 with the first payment is on the day of purchase. ● • The annuities are paid for with a single premium at purchase ("net single premium") ● ● The interest rates the insurance company uses: o 4.0% for the first year O 5.0% for years 2 and later Rates from the mortality table the insurance company uses: 965-0.015 966-0.016 • The net single premium that Beta pays is $120 ● Calculate the net single premium Alpha pays

Answer rating: 100% (QA)

ANS WER 100 C AL C UL ATION The net single premium for Alpha is 100 This is calculated using the ... View the full answer