Question: For this question you are given that i = 5% and the following temporary and whole life annuity due factors: 40:20| = 12.9935 40 =

For this question you are given that i = 5% and the following temporary and whole life annuity due factors:

40:20| = 12.9935 40 = 18.4578

A whole life annuity due pays $R a year, with the first 20 payments guaranteed. It is issued to (40).

If the net single premium is $200,000, what is the value of R? (to nearest dollar)
  • A.

    $10,836

  • B.

    $10,782

  • C.

    $ 7,669

  • D.

    $11,157

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