A life annuity on (x) provides for benefits made continuously for 2 years, provided that (x)...

 

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A life annuity on (x) provides for benefits made continuously for 2 years, provided that (x) is alive. The annual rate of payment at time t is c(t), defined by c(t) = 0 ≤ t < 1, 1≤t≤2. The interest rate is 0, qx = 0.3, and qx+1 = 0.4. Find the present value, assuming UDD. A life annuity on (x) provides for benefits made continuously for 2 years, provided that (x) is alive. The annual rate of payment at time t is c(t), defined by c(t) = 0 ≤ t < 1, 1≤t≤2. The interest rate is 0, qx = 0.3, and qx+1 = 0.4. Find the present value, assuming UDD.