A 40-year-old person buys a 20-year deferred 15-year term annuity contract for a single upfront premium of

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A 40-year-old person buys a 20-year deferred 15-year term annuity contract for a single upfront premium of $700,000. Interest earnt by the insurance company is assumed to be 6% over the life of the contract. Assume the annuity is paid at the start of each year for the entire term. Find out the amount paid each year for the given price? Assume that non-select mortality applies for the whole term. Give the annuity payment amount rounded to the nearest $10.

Posted Date: May 13, 2024 07:37 AM

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A 40-year-old person buys a 20-year deferred 15-year term annuity contract for a single upfront premium of

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Heres how to calculate the annual annuity payment 1 Calculate the Future Value FV of the premium The ... View the full answer

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