Question $7$

$1pts$

Alice, $20$ years old, takes out a mortgage of $$M$ to purchase a home at an annual loan interest rate of $5\%.$ This loan will be repaid with annual payments of $$36,000$ at the beginning of each year for $30$ years. Assuming mortality follows LTAM standard ultimate life table, which value is closest to the APV of the mortgage payments from the perspective of the insurance company $($rounded to the nearest $$1,000?$

$$ $$847,000$

$$579,000$

$$470,000$

$$761,000$

$$672,000$