Consider a whole life annuity paying $10,000 at the beginning of each year to (r), z...
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Consider a whole life annuity paying $10,000 at the beginning of each year to (r), z 20 assuming that they are alive. This annuity is combined with a death benefit of $b> 0 payed to (r) at the end of the year of death. Assume the discount interest rate d = 0.08 and determine the value of b that minimizes he variance of the present value random variable of the just-described combination of annuity and insurance. Consider a whole life annuity paying $10,000 at the beginning of each year to (r), z 20 assuming that they are alive. This annuity is combined with a death benefit of $b> 0 payed to (r) at the end of the year of death. Assume the discount interest rate d = 0.08 and determine the value of b that minimizes he variance of the present value random variable of the just-described combination of annuity and insurance.
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Related Book For
Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
Posted Date:
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