The Garrett Life Insurance Company developed a new life annuity product. It is issued to people age
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The Garrett Life Insurance Company developed a new life annuity product. It is issued to people age 30 who pay a premium at the beginning of age 30, 35 and 40.
It then pays a lump sum of $2,000,000 to anyone alive at the beginning of age 90, a lump sum of $4,000,000 for anyone still alive at the beginning of age 95, and a death benefit lump sum of $10,000,000 to those dying at age 99.
Calculate the premium to be paid at ages 30, 35 and 40. Use a 4% discount rate.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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