Question: Smith, age 6 5 , is evaluating three temporary life annuities, each of which provides annual payments. For each annuity, the last payment is made
Smith, age is evaluating three temporary life annuities, each of which provides annual payments. For each annuity, the last payment is made at age The first annuity pays $ at age ; subsequent payments decrease by $ per year. The present value of this annuity is $ The second annuity pays $ at age ; subsequent payments increase by $ per year through age The present value of this annuity is $ The third annuity pays $ each year beginning at age and continuing to age The present value of this annuity is P Determine P
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