Question: 3. Jeff and John shared equally in an inheritance. Using his inheritance, John immediately bought a 10-year annuity-due with annual payments of 2500 each Jeff

3. Jeff and John shared equally in an inheritance. Using his

3. Jeff and John shared equally in an inheritance. Using his inheritance, John immediately bought a 10-year annuity-due with annual payments of 2500 each Jeff put his inheritance in an investment fund earning an annual effective interest rate of 9%. Two years later, Jeff bought a 15-year annuity-immediate with annual payment of Z. The present value of both annuities was determined using an annual effective interest rate of 8% Calculate Z. [SOA I1/96 84 (A) 2330 (B) 2470 (C) 2515 (D) 2565 2715

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