A person buys a two-year annuity with a single premium on their 90th birthday. This individual...

 

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A person buys a two-year annuity with a single premium on their 90th birthday. This individual will receive payments of $1,000,000 on their 91st and 92nd birthdays as long as no decrements have occurred before each of those birthdays. Decrement (1) is death, decrement (2) is withdrawal, decrement (3) is disability. You are given: (1) (2) (3) X 90 0.010 0.03 0.02 91 0.015 0.04 0.02 At an annual effective interest rate of 6%, determine the single net premium. A 1660644 B 1690325 1779993 D 1810609 E 1886792 A person buys a two-year annuity with a single premium on their 90th birthday. This individual will receive payments of $1,000,000 on their 91st and 92nd birthdays as long as no decrements have occurred before each of those birthdays. Decrement (1) is death, decrement (2) is withdrawal, decrement (3) is disability. You are given: (1) (2) (3) X 90 0.010 0.03 0.02 91 0.015 0.04 0.02 At an annual effective interest rate of 6%, determine the single net premium. A 1660644 B 1690325 1779993 D 1810609 E 1886792

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