Question: Hello i need help solving the attached finance problem, thank you! The proceeds from a life insurance policy are left on deposit wl interest cudited

Hello i need help solving the attached finance problem, thank you!

The proceeds from a life insurance policy are left on deposit wl interest cudited at the end of each year t= 1,2,. .. . 9, 10. At the minimumg annual off. intrest rate of 3 % guaranteed in the policy, the equal annual withdraw would be 1000 . However , the insurer audits intest at an annual eff. rate of 4 %% for the first form years and 5% for the next 6 years. The actual amount withdrawn at the end of year t is w ( t ) = F ( ( ) a 11 - 41.03 Where F(t ) is the amount of the fund , including interest prize to the withdrawl . Calculate W ( 10)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
