(b) Mrs Angel wants to help her 18 years old grandson Bill buy a house a few years after he graduates from the University She therefore pays $40,000 for a pure endowment which will pay a benefit to Bill on his survival to age 24 Assume the effective interest rate is 2 p a (10 marks) (i) How much w...

i How much will this survival benet be 5 marks ANSWER This survival benefit will be 48000 WORKING PV ...

(b) Mrs Angel wants to help her 18 years old grandson Bill buy a house a...

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(b) Mrs Angel wants to help her 18 years old grandson Bill buy a house a few years after he graduates from the University. Sh

(ii) Find the difference of the endowment amount compared to the accumulated value of the money in a savings account at r = 2

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Discrete and Combinatorial Mathematics An Applied Introduction

ISBN: 978-0201726343

5th edition

Authors: Ralph P. Grimaldi

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Posted Date: Oct 15, 2020 05:45 AM

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(b) Mrs Angel wants to help her 18 years old grandson Bill buy a house a...

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