Question: 3. For this question you are given / = 6% and the following values: 1Eso = 0.9398491 5Eso = 0.7304774 10Eso = 0.5260284 303 =

3. For this question you are given / = 6% and the following values: 1Eso = 0.9398491 5Eso = 0.7304774 10Eso = 0.5260284 303 = 4.43079 - 4.40903 age - 12.88150 (a) A person aged 51 purchases a whole life annuity paying $25,000 at the beginning of each year. What is the net single premium (NSP) of this annuity? (4 marks) (b) A person aged 50 purchases a 10-year temporary life annuity paying $30,000 at the end of each year. What is the NSP of this annuity? (4 marks) (c) A person aged 50 pays $500,000 to purchase a whole life annuity that pays $R at the end of each year. The first 5 payments are guaranteed. Calculate R. (4 marks)
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