Question: This is like actuarial science or financial math. Question An insurance company is making annual payments to pay the medical costs for a claimant. The

This is like actuarial science or financial math.

Question An insurance company is making annual payments to pay the medical costs for a claimant. The annual claims costs are valued at $2000 today, and are expected to increase with inflation at a rate of 3% per year. Payments are made for 18 years with the first payment to be made five years from today. Find the PV of this obligation (at t = 0) if the annual effective interest rate is 4%. Possible Answers 30.698 831.637 32,519 D33.928 34,506

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