A life insurance company can invest funds to earn (after expenses) 8 compounded quarterly A client wishes to purchase a five year ordinary annuity that will commence 3 1 2 years from now What will the insurance company charge for the annuity, if the quarterly payments are $750 ...

Given PMT 750 i 84 2 n 45 20 d 435 14 PV ...

A life insurance company can invest funds to earn (after expenses) 8% compounded quarterly. A client wishes

Question:

A life insurance company can invest funds to earn (after expenses) 8% compounded quarterly. A client wishes to purchase a five-year ordinary that will commence 3 1/2 years from now. What will the insurance company charge for the if the quarterly payments are $750?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...