Question: ACTUARIAL SCIENCE IMPORTANT: IF YOU DON'T HAVE THE RIGHT ANSWER DO NOT RESPOND. Can you help me to solve this? When you write the answer
ACTUARIAL SCIENCE
IMPORTANT: IF YOU DON'T HAVE THE RIGHT ANSWER DO NOT RESPOND. Can you help me to solve this? When you write the answer please try to be as clearly as possible, don't skip steps. If your handwriting is readable and the answer is correct I will upvote. Thank you so much.

19. (5.27) A student loan of amount 10,000 is amortized over 20 years by continuous payment at =.08. The loan is subject to default at constant force of default =.01. A government agency guarantees the outstanding balance of the loan in case of default. Using force of interest .05, calculate the APV of the guarantee
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