Solution-Find out the amount paid year

Find out the amount paid year

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A 40-year-old person buys a 20-year deferred 15-year term annuity contract for a single upfront premium of $700,000. Interest earnt by the insurance company is assumed to be 6% over the life of the contract. Assume the annuity is paid at the start of each year for the entire term. Find out the amount paid each year for the given price? Assume that non-select mortality applies for the whole term. Give the annuity payment amount rounded to the nearest $10.

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Find out the amount paid year

Reference no: EM133072249

Reference no: EM133072249

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