3) Phyllis Vance is currently age 45. She uses a single premium to purchase an annuity...

 

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3) Phyllis Vance is currently age 45. She uses a single premium to purchase an annuity due with the following payment schedule. She will receive $1000 at the beginning of the year for the first 5 years, $2000 at the beginning of the year for the next five years, and then $3000 at the beginning of the year for the rest of her life. Using the information below, how much does she need to pay for this annuity? (7 marks) i) ä45= 14.112 ii) ä45:101= 7.648 ä45:15]=9.957 vi) vii) ä50:101= 7.574 SP45 = 0.977 10P45= 0.943 v = 0.94 3) Phyllis Vance is currently age 45. She uses a single premium to purchase an annuity due with the following payment schedule. She will receive $1000 at the beginning of the year for the first 5 years, $2000 at the beginning of the year for the next five years, and then $3000 at the beginning of the year for the rest of her life. Using the information below, how much does she need to pay for this annuity? (7 marks) i) ä45= 14.112 ii) ä45:101= 7.648 ä45:15]=9.957 vi) vii) ä50:101= 7.574 SP45 = 0.977 10P45= 0.943 v = 0.94

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ANSWER Phyllis Vance needs to pay 94 for this annuity EXPLANATION i The present value of an annuity ... View the full answer