The present values of a 10-year life annuity on (60), and a 10-year compound inter- est...

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The present values of a 10-year life annuity on (60), and a 10-year compound inter- est annuity, with annual payments of 1. are given, respectively by ao(10)-5 and (1) 6. A person age 60 has 100 000 that he plans to pay as a single premium for a life annuity, beginning at age 60. This will provide a level income of 12 500 per year for life. What will the yearly income be if, instead of a straight life annuity, he purchases a life annuity with a 10-year guaranteed period? The present values of a 10-year life annuity on (60), and a 10-year compound inter- est annuity, with annual payments of 1. are given, respectively by ao(10)-5 and (1) 6. A person age 60 has 100 000 that he plans to pay as a single premium for a life annuity, beginning at age 60. This will provide a level income of 12 500 per year for life. What will the yearly income be if, instead of a straight life annuity, he purchases a life annuity with a 10-year guaranteed period?

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