Question: Alpha (age 65) and Beta (age 66) each purchase a whole life annuity with annual payments of $10 with the first payment is on the

Alpha (age 65) and Beta (age 66) each purchase a whole

Alpha (age 65) and Beta (age 66) each purchase a whole life annuity with annual payments of $10 with the first payment is on the day of purchase. The annuities are paid for with a single premium at purchase (net single premium) The interest rates the insurance company uses: o 4.0% for the first year o 5.0% for years 2 and later Rates from the mortality table the insurance company uses: 965=0.015 466=0.016 The net single premium that Beta pays is $120 Calculate the net single premium Alpha pays Alpha (age 65) and Beta (age 66) each purchase a whole life annuity with annual payments of $10 with the first payment is on the day of purchase. The annuities are paid for with a single premium at purchase (net single premium) The interest rates the insurance company uses: o 4.0% for the first year o 5.0% for years 2 and later Rates from the mortality table the insurance company uses: 965=0.015 466=0.016 The net single premium that Beta pays is $120 Calculate the net single premium Alpha pays

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